88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) has announced the successful completion of its bookbuild, raising £5.23 million (A$9.9 million) through the issuance of new equity.
The junior oil and gas company will issue 3.29 billion new shares at a price of 0.5 Australian cents each (£0.0016 per share). The funds raised, together with its existing cash reserves of $17.5 million, ensure that the company is now funded for at least the next 12 months, with net proceeds of the Placement, together with the Company’s existing cash reserves (A$17.5 million as at 31 March 2024, unaudited)
These resources will support the advancement of 88 Energy’s assets in Alaska, including the Phoenix project where recent well tests have shown promising potential, as well as its new project in Namibia.
Chief Executive Ashley Gilbert stated, “We are now well-funded to move forward with the development and monetization plans for Project Phoenix. Next steps include conducting post-well flow test studies, increasing contingent resources at SMD and SFS to enhance the BFF contingent resource, and seeking a strategic partner through a farm-out of Project Phoenix to drive further development and commercialization.”
Gilbert further noted, “The successful Hickory-1 flow test opens several avenues for 88 Energy and its Joint Venture partner to commercialize and capitalize on Project Phoenix.”
He added, “We are equally excited about initiating exploration activities at the Namibian farm-in acreage at PEL 93 in the Owambo Basin, a region with significant hydrocarbon exploration potential that remains largely untapped.”
