88 Energy Ltd - Australia-based oil explorer in US state of Alaska - Raises A$32 million gross proceeds, about £16.8 million, in oversubscribed share placement of 914.3 million shares at A$0.035 per share. Price was 10% discount to volume weighted average price on ASX for the 30 days to February 9. The new shares will constitute around 5.8% of the enlarged issued share capital of 15.73 billion shares.
The funds will be used to fund the planned Merlin-2 well drilling and appraisal activities, as will 88’s cash reserves of A$32.3 million as of December 31. Merlin-2 well is expected to spud in early March, with total drilling costs plus completion of wireline program to total around A$39 million.
88 Energy Managing Director & Chief Executive Officer Ashley Gilbert, says: ‘Completion of this placement ensures 88 Energy is funded to undertake the full suite of targeted appraisal activities at the Merlin-2 well, including flow testing of the well. While budgeted well costs have increased due to global supply chain pressures, it is important to note that 88 Energy is still expected to drill and appraise Merlin-2 at substantially lower cost levels relative to other operators on the Alaskan North Slope.’
Current stock price: 2.24 pence, up 1.9% on Monday
12-month change: up sharply from 0.49p
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