Information  X 
Enter a valid email address

88 Energy Limited (88E)

  Print      Mail a friend

Friday 09 November, 2018

88 Energy Limited

Result of Placing

RNS Number : 9261G
88 Energy Limited
09 November 2018
 

9 November 2018

 

88 Energy Limited

 

Result of Placing

 

88 Energy Limited ("88 Energy" or the "Company", ASX:88E, AIM 88E) is pleased to advise that further to the announcement by the Company on 8 November 2018, it has successfully completed a bookbuild to domestic and international institutional and sophisticated investors to raise approximately £5.56 million (equivalent to A$10.0 million), before expenses (the "Placing") through the issue of 555,555,600 ordinary shares (the "New Ordinary Shares") at £0.01 (equivalent to A$0.018) per New Ordinary Share (the "Placing Price"). The Placing follows the closure of the non-renounceable rights issue (for AIM purposes, the 'open offer') announced by the Company on 3 October 2018 ("Rights Issue").

 

As at 30 September 2018, the Company had cash resources of A$8.1 million (prior to the receipt of gross proceeds of A$3.6 million pursuant to the Rights Issue). Funds raised pursuant to the Placing will be used with existing cash reserves to fund the Company's ongoing evaluation of the conventional and unconventional prospectivity of existing assets, including drilling of Winx-1 in Q1 2019, and to enable it to identify and exploit new opportunities on the North Slope of Alaska.

 

Specifically, the net proceeds will be applied towards:

 

·    Drilling and/or production testing, if appropriate, at the upcoming (Q1 2019) Winx-1 exploration well;

·    Ongoing lease rental payments to maintain the current lease portfolio in good standing;

·    Continued evaluation of geological potential across the asset portfolio;

·    Fund interest payments on the Company's debt facility; and

·  Finance the Company's ongoing working capital requirements and provide capital for any additional growth initiatives.

 

Commenting on the success of the Placing, Dave Wall, Managing Director of 88 Energy, stated:

"We would like to thank our advisers and shareholders for their continued support as we enter a potentially transformational period for the Company, which includes a possible farm-out by year-end followed by the spud of the Winx-1 exploration well in the first quarter of 2019."

 

Hartleys Limited acted as Lead Manager and Sole Bookrunner to the Placement in Australia. Cenkos Securities plc acted as the Company's Nominated Adviser and Sole Broker to the Placement in the United Kingdom.

 

In accordance with the terms of the Rights Issue, the New Ordinary Shares will be issued on or about Tuesday, 20 November 2018, under Exception 3 of ASX Listing Rule 7.2. The issue of the New Ordinary Shares does not require shareholder approval.

 

Application will be made for admission of the New Ordinary Shares to trading on AIM ("Admission"), with Admission expected to occur on 20 November 2018.

 

Following the issue of the New Ordinary Shares, the Company will have 6,331,540,324 ordinary shares in issue, all of which have voting rights. The figure of 6,331,540,324 ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change their interest in, the Company.

 

Media and Investor Relations:

 

88 Energy Ltd

Dave Wall, Managing Director                                                   Tel: +61 8 9485 0990

Email: [email protected] 

 

Finlay Thomson, Investor Relations                                        Tel: +44 7976 248471

 

Hartleys Ltd

Dale Bryan                                                                                 Tel: + 61 8 9268 2829

 

Cenkos Securities                                                                   Tel: + 44 131 220 6939

Neil McDonald/Derrick Lee


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
ROILLFLLLRLAIIT

a d v e r t i s e m e n t