88 Energy Ltd (LON:88E, ASX:88E) revealed it aims to raise £5.9mln of new capital through a share placing, as it continues to countdown to new conventional oil exploration activities in Alaska.
The placing follows on from a right issue which raised £2.02mln, of a possible £7.96mln, and, will see the remainder of the new shares (around 593mln of them) sold to investors at a price of 1p each.
It is being conducted by a bookbuild process run by broker Cenkos in the UK and Hartleys Limited in Australia.
Cash from the fundraising is earmarked for 88 Energy’s share of drilling costs for the Winx-1 well, ongoing lease rent payments, continuing geologic evaluation, debt interest payments and ongoing working capital.
“The net proceeds of the placing are intended to be used, together with the company's existing cash reserves, to fund the company's ongoing evaluation of the conventional and unconventional prospectivity of existing assets,” 88 Energy said in a statement.
The Winx-1 exploration well, which will target a 400mln barrel prospect, is due to be drilled in the first quarter of 2019.