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88 Energy Ltd on Thursday announced a share placing to raise funds for the development of its Icewine East well exploration project.
The Australian oil exploration and appraisal company said it will raise A$14.9 million through the issue of 1.7 billion shares at an issue price of A$0.009 per share.
88 Energy plans to use the funds raised as well as existing cash reserves to fund its Icewine East well exploration project, which targets an estimated 1.03 billion barrels of oil from multiple reservoir zones. The company said it is continuing to advance its planning for the well, which is scheduled for 2023.
In addition, the company plans to use the funds for new venture opportunities and working capital.
Managing Director Ashley Gilbert said: ‘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’
‘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,’ Gilbert added.
Shares in 88 Energy were down 0.8% at 0.52 pence in London on Thursday.
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