Highlights
• Oversubscribed Placement to raise A$17.5 million (before costs) from domestic and international
institutional and sophisticated investors.
• Issue price of A$0.0095 per share (£0.0055).
• Funds to be directed towards the planned Hickory-1 well at Project Phoenix, payment for the new
Project Leonis acreage, portfolio expansion opportunities / new ventures and additional working
capital.
88 Energy Limited is pleased to advise
that it has successfully completed a bookbuild to domestic and international institutional and
sophisticated investors to raise A$17.5 million (approx. £10.1 million) before costs (the Placement).
This is to be achieved through the issue of 1,842,105,263 fully paid ordinary shares in the Company
(the New Ordinary Shares) at an issue price of A$0.0095 (£0.0055) per New Ordinary Share (the Issue
Price), which represents a 20.8% discount to the closing price of A$0.012 on 1 February 2023 and a
20.2% discount to the ASX VWAP for the ten calendar days prior to 1 February 2023.
The net proceeds of the Placement, together with the Company's existing cash reserves (A$14.1 million
(approx. £8.1 million) as at 31 December 2022), will strengthen the Company's balance sheet and will
provide the Company with sufficient capital to fund the planned Hickory-1 well at Project Phoenix,
payment for the new Project Leonis acreage, finance potential portfolio expansion / new ventures
(should any be identified and pursued), and also additional working capital. 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.
The Company will now focus its attention on the Hickory-1 well, which is expected to spud in early March
2023. Hickory-1 is designed to appraise up to six conventional reservoir targets within the SMD, SFS,
BFF and KUP reservoirs and 647 million barrels of oil1,2, and is permitted up to a total depth of 12,500
feet. Hickory-1 is expected to cost approximately US$13.5 million gross (88E net approx. US$10
million), with this modest cost a result of the proximity of Project Phoenix and the Hickory-1 well to key
infrastructure including the Dalton Highway.
