TIDM88E
RNS Number : 4525K
88 Energy Limited
02 September 2021
THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR RELEASE,
PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, CANADA, JAPAN, THE
REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO
WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF
THAT JURISDICTION. PLEASE SEE THE IMPORTANT NOTICES AT THE END OF
THIS ANNOUNCEMENT.
THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT
CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN
OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY NEW ORDINARY
SHARES OF 88 ENERGY LIMITED IN THE UNITED STATES, CANADA, JAPAN,
THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH
SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL
THIS ANNOUNCEMENT IS NOT FOR PUBLICATION OR DISTRIBUTION,
DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA.
THIS ANNOUNCEMENT IS NOT AN OFFER OF SECURITIES FOR SALE INTO THE
UNITED STATES. THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN AND
WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES,
EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION FROM REGISTRATION. NO
PUBLIC OFFERING OF SECURITIES IS BEING MADE IN THE UNITED
STATES.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN
ARTICLE 7 OF THE UK VERSION OF THE MARKET ABUSE REGULATION NO.
596/2014 ("MAR"), WHICH IS PART OF ENGLISH LAW BY VIRTUE OF
EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
88 Energy Limited
Result of Placing
88 Energy Limited ("88 Energy" or the "Company") (ASX, AIM: 88E)
is pleased to announce that, further to the notification on 31
August 2021,the Company has successfully completed a bookbuild to
domestic and international institutional and sophisticated
investors to raise A$23.96 million (GBP12.71 million), before costs
(the "Placing") through the issue of 855,856,369 fully paid
ordinary shares of no par value (the "Placing Shares") at a price
of A$0.028 (equivalent to 1.49 pence ) per Placing Share (the
"Placing Price").
The net proceeds of the Placing, together with the Company's
existing cash reserves (A$14.9 million as at 1 September 2021),
will strengthen the Company's balance sheet and finance the
drilling and logging of the Merlin-2 appraisal well in Q1 2022,
targeting 652 million barrels in the N20, N19 and N18 horizons,
fund lease acreage payments and enable identification and execution
of potential new project opportunities. Following completion of the
proposed Placing, the Company will have sufficient cash to fund its
ongoing working capital requirements and general and administrative
overheads for at least 12 months.
Following the success of the Merlin-1 drilling program earlier
this year (see 88 Energy's announcement dated 16 August 2021,
"Merlin-1 well confirms light oil with appraisal well planned for
Q1 2022"), the Merlin-2 appraisal well will be designed to test the
Nanushuk formation further to the east, where enhanced reservoir
thickness and quality are expected. The Merlin-2 well will target a
net entitlement mean Prospective Resource of 652 million barrels of
oil (unrisked)(1) and is scheduled to be drilled in Q1 CY2022.
Details of the Placing
The Placing does not require shareholder approval and the issue
and allotment of the Placing Shares will rely on the Company's
placement capacity pursuant to ASX Listing Rule 7.1.
The Placing Shares, which will rank pari passu with the existing
ordinary shares in the Company, have been conditionally placed
subject to admission to trading on both the ASX and AIM
("Admission"). Application will be made for the Placing Shares to
be admitted to trading on both the ASX and AIM, with Admission
expected to occur on 10 September 2021.
Following the issue of the Placing Shares, the Company will have
14,400,403,996 ordinary shares in issue, all of which have voting
rights. The figure of 14,400,403,996 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.
Euroz Hartleys Limited (Euroz Hartleys) acted as Sole Lead
Manager and Sole Bookrunner to the Placing. Inyati Capital Pty Ltd
(Inyati) acted as Co-Manager to the Placing. Cenkos Securities Plc
(Cenkos) is acting as 88 Energy's Nominated Adviser and Sole Broker
to the Placing in the United Kingdom. Commission for the Placing
was 6% (plus GST) of total funds raised across Euroz Hartleys
Limited, Cenkos and Inyati. In addition, the Company will issue
50,000,000 Unlisted Options (exercisable at $0.05 on or before the
date which is 3 years from the date of issue) to the managers of
the Placing (Broker Options). The Broker Options will be subject to
shareholder approval at a General Meeting.
88 Energy Managing Director and CEO, Ashley Gilbert,
commented:
"Completion of this placing positions 88 Energy strongly as
planning and preparations continue for drilling of the Merlin-2
appraisal well in Q1 CY2022. We will continue to evaluate potential
strategic partners for the Peregrine Project, in which we maintain
a 100% working interest. However, ensuring our ability to fully
fund Merlin-2 via this placing delivers us excellent commercial
leverage and optionality with respect to these discussions.
Other key activities over the coming months include the targeted
unlocking of value in our Yukon acreage via advancing negotiations
with nearby resource owners for a joint development area,
optimisation of historic Umiat oil field development plans, and
reassessment of our Icewine acreage following the neighbouring
Talitha-1 well drilled earlier this year.
Permitting remains on schedule for Q1 2022 spud of the Merlin-2
well. We would like to thank our shareholders for their continued
support as we enter into this exciting phase."
(1) Please refer to the 88E's announcement dated 16 August 2021
for full details of the Company's Prospective Resource estimate,
associated risking and applicable Cautionary Statement
For further information please contact:
88 Energy Ltd admin@88energy.com
Ashley Gilbert, Managing Tel: +61 8 9485 0990
Director
Finlay Thomson, Investor Tel: +44 7976 248 471
Relations
Fivemark Partners Tel: +61 410 276 744
Investor and Media Relations Tel: +61 422 602 720
Andrew Edge/ Michael Vaughan
EurozHartleys Ltd
Dale Bryan Tel: +61 8 9268 2829
Cenkos Securities Plc
Neil McDonald Tel: +44 (0)131 220 6939 / +44 (0)20
7397 8900
Derrick Lee
Pearl Kellie
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 35
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 prospective
resource 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.
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.
About 88 Energy
88 Energy is an oil and gas exploration company with assets on
the North Slope of Alaska. It operates 193,000 net acres at Project
Icewine and 195,973 net acres at Project Peregrine. Additional
information can be found on the Company website www.88energy.com
.
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