TIDM88E
RNS Number : 6961V
88 Energy Limited
11 August 2022
This announcement contains inside information
11 August 2022
88 Energy Limited
PLACEMENT TO RAISE A$14.9M
Highlights
-- Share placement commitments to raise A$14.9 million gross proceeds.
-- Issue price of A$0.009 per share represents a 18.2% discount
to last closing price of A$0.011 (9 August 2022) and a 18.9%
discount to the VWAP on the ASX for the ten calendar days to 9
August 2022.
-- Funds to be directed towards the planned Icewine East 2023
exploration well targeting 1.03 billion bbls of oil*, in addition
to new ventures opportunities and working capital.
88 Energy Limited (ASX:88E, AIM:88E, OTC:EEENF) ( 88 Energy or
the Company ) is pleased to advise that it has successfully
completed a bookbuild to domestic and international institutional
and sophisticated investors to raise A$14.9 million (equivalent to
GBP8.59m) before costs (the Placement ). This is to be achieved
through the issue of 1,655,555,556 fully paid ordinary shares in
the Company (the New Ordinary Shares ) at an issue price of A$0.009
(equivalent to GBP0.0052) per New Ordinary Share) (the Placement
Price ).
The funds raised under the Placement together with the Company's
existing cash reserves (A$6.1 million (equivalent to GBP3.52m) as
at 31 July 2022), are to be used to fund the planned Icewine East
well long lead, pre-planning and permitting activities including
planning for a flow test program, contingencies, new ventures
portfolio expansion opportunities, and working capital.
The Company is continuing to advance its planning for an Icewine
East well in 2023, which is designed to include at least one flow
test in the 4 reservoir targets, the subject of the recent Icewine
East maiden and independently certified, total Prospective Resource
estimate of 1.03 billion barrels of oil*. The resource estimate is
the result of a period of review of an extensive data suite that
included seismic data, logs from Icewine-1 and nearby wells
adjacent to the Icewine East acreage, in addition to the recently
completed petrophysical analysis and mapping.
The continuing interpretation of the Franklin Bluff's 3D
seismic, including AVO analysis to define 'sweet spots' in each of
the plays targeted, will assist with determining optimal future
exploration and appraisal drilling locations in the Icewine East
acreage.
88 Energy Managing Director, Ashley Gilbert, commented:
"Completion of this placement ensures 88 Energy is now funded to
pursue securing long lead items and progress pre-planning and
permitting for its planned Icewine East exploration well and flow
test scheduled for 2023, which is targeting an estimated 1.03
billion bbls of oil*. The Icewine East acreage has been de-risked
by the recent and ongoing Pantheon drilling and flow tests on their
adjacent acreage, as well as data from the Icewine-1 well logs and
the recently leased Franklin Bluffs 3D data set.
*Gross mean total prospective resources. Refer to ASX announcement on 10 August 2022
for
further details and refer to Cautionary Statement .
This work substantially increases our confidence in unlocking
the potential of the Icewine East acreage, and the Company looks
forward to updating shareholders on our planned exploration well in
2023."
"88 Energy has also been actively assessing multiple new venture
opportunities across the asset life cycle to expand our portfolio
of assets and opportunity types. We are targeting assets that are
complementary to the existing portfolio and provide shareholders
with exposure to additional value creation potential."
Euroz Hartleys Limited acted as Sole Lead Manager and Sole
Bookrunner to the Placement. Cenkos Securities Plc is acting as 88
Energy's Nominated Adviser and Sole Broker to the Placement in the
United Kingdom. Inyati Capital Pty Ltd (Inyati) acted as Co-Manager
to the Placement. Commission for the Placement was 6% (plus GST) of
total funds raised across Euroz Harleys Limited, Inyati Capital Pty
Ltd and Cenkos Securities Plc. In addition, the Company will issue
90,000,000 Unlisted Options (exercisable at $0.02 on or before the
date which is 3 years from the date of issue) in total to the
managers of the Placement. The Broker Options will be subject to
shareholder approval.
The issue of the 1,655,555,556 New Ordinary Shares is not
subject to shareholder approval as the issuance will fall within
the Company's placement capacity pursuant to ASX Listing Rule 7.1.
The New Ordinary Shares will rank pari passu with the existing
ordinary shares in the Company, with DVP settlement scheduled for
19 August 2022 and allotment 22 August 2022. Application has been
made for the New Ordinary Shares to be admitted to trading on AIM.
It is expected that admission of the New Ordinary Shares to trading
on AIM will occur at 8.00 a.m. on 22 August 2022.
Following the issue of the New Ordinary Shares, the Company will
have 18,265,762,962 ordinary shares on issue, all of which have
voting rights. The figure of 18,265,762,962 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.
As referenced in the quote from the Managing Director above, the
Company notes that it is continually in discussions with various
parties with respect to new venture opportunities across the asset
life cycle to expand its portfolio of assets and opportunities.
Such potential opportunities are not announced until such time as
the Company has agreed the material commercial and legal terms with
the relevant counterparty or counterparties, and customary due
diligence is completed. Until the material commercial and legal
terms have been agreed and due diligence completed, there can be no
guarantee that such discussions, whether or not they have been
disclosed, will lead to the announcement or completion of a binding
agreement.
Cautionary Statement : The estimated quantities of petroleum
that may be potentially recovered by the application of a future
development project relate to undiscovered accumulations. These
estimates have both an associated risk of discovery and a risk of
development. Further exploration, appraisal and evaluation are
required to determine the existence of a significant quantity of
potentially movable hydrocarbons.
Pursuant to the requirements of the ASX Listing Rules Chapter 5
and the AIM Rules for Companies, the technical information and
resource reporting contained in this announcement was prepared by,
or under the supervision of, Dr Stephen Staley, who is a
Non-Executive Director of the Company. Dr Staley has more than 37
years' experience in the petroleum industry, is a Fellow of the
Geological Society of London, and a qualified
Geologist/Geophysicist who has sufficient experience that is
relevant to the style and nature of the oil prospects under
consideration and to the activities discussed in this document. Dr
Staley has reviewed the information and supporting documentation
referred to in this announcement and considers the resource and
reserve estimates to be fairly represented and consents to its
release in the form and context in which it appears. His academic
qualifications and industry memberships appear on the Company's
website and both comply with the criteria for "Competence" under
clause 3.1 of the Valmin Code 2015. Terminology and standards
adopted by the Society of Petroleum Engineers "Petroleum Resources
Management System" have been applied in producing this document
This announcement has been authorised by the Board.
Media and Investor Relations:
88 Energy Ltd
Ashley Gilbert, Managing Director
Tel: +61 8 9485 0990
Email:investor-relations@88energy.com
Fivemark Partners , Investor and Tel: +61 410 276 744
Media Relations Tel: +61 422 602 720
Andrew Edge / Michael Vaughan
EurozHartleys Ltd Tel: +61 8 9268 2829
Dale Bryan
Cenkos Securities Tel: +44 131 220 6939
Neil McDonald / Derrick Lee
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END
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August 11, 2022 03:20 ET (07:20 GMT)
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