88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) told investors it wants to raise up to A$15mln (£8.1mln) as it prepares to start drilling an exploration well within its Project Phoenix area.
Trading in its shares has been halted as a placing is launched to drum up A$12mln before expenses by Cenkos and EurozHartleys in the UK and Australia respectively, with the full potential amount dependent on over-subscriptions.
The placing price is A$0.0095, equivalent to 0.55p, a discount of 20.8% to the ASX closing price on 1 February.
At the end of December, the company had cash resources of A$14.1mln.
Last week, it said it expects to start drilling for the six targets of the Hickory-1 exploration well in the Project Phoenix area on or around 1 March, an area previously referred to as ‘Icewine East’.
It is aimed at oil-bearing conventional reservoirs like those seen nearby by Pantheon Resources.