The 88 Energy Ltd (LON: 88E) rose 7.69% after unveiling plans to raise approximately £4.5 million by placing up to 1,457,716,474 new ordinary shares for £0.0031 per Placing Share. The exact price shall apply to the shares issued under the Rights Issue conducted by the company.
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The placing comes after the company closed the on-renounceable rights issue, also known as the open offer, of up to 2,010,786,822 ordinary shares priced at £0.0031 per share. The rights issue was first announced on 3 July 2023 with the ultimate target of raising about £6.3 million.
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However, the company received applications for 553,070,348 ordinary shares, raising gross proceeds of £1.7 million (equivalent to about A$3.3 million). The company can issue the new placing shares without requiring new shareholder approval.
The funds raised through the rights issue and placing will fund ongoing activity across its oil and gas exploration portfolio, located on the North Slope of Alaska and onshore Texas. The company intends to flow-test the Hickory-1 well in Project Phoenix.
Other planned activities include permitting and planning a potential new well at Project Leonis and development wells for Project Longhorn production growth. The company’s program planning is on schedule and will include rigorous technical and economic optimisation before finalisation.
The flow test and well stimulation program is being developed in consultation with flow test design experts utilising available regional information in combination with a detailed evaluation of the drilling and wireline logging data from Hickory-1.
Furthermore, the Company will continue progressing with development activities at Project Longhorn, where it plans to drill two new wells and perform two workovers to grow production from the acreage.
The company noted that the book build would open with immediate effect after the release of today’s announcement. The number of Placing Shares to be issued through the Placing will be agreed upon by Cenkos, Euroz Hartleys and the Company at the close of the Bookbuild.
The 88 Energy (88E) share price.
The 88 Energy (88E) share price rallied 7.69% to trade at 0.35p, rising from Friday’s closing price of 0.325p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.