88 Energy Ltd (AIM:88E, ASX:88E, OTC:EEENF) plans to raise A$14.9mln (£8.6mln) before costs in a share placing to help fund its planned Icewine East exploration well in Alaska.
It will issue 1.66 billion shares at A$0.009 per share to domestic and international institutional and other investors after completing a bookbuild.
The price represents a 18.2% discount to last closing price of A$0.011 on August 9, it said.
The net proceeds, along with the company's existing cash reserves, will go towards long lead, pre-planning and permitting activities for Icewine East, including planning for a flow test programme and contingencies.
The funds will also be used for potential new ventures and working capital.
"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, which is targeting an estimated 1.03 billion bbls [barrels] of oil,” said managing director Ashley Gilbert.
"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,” he said, adding that it is targeting assets that are complementary to the company’s existing portfolio.
Two days ago, 88 Energy said it planned to raise at least A$10mln in a share placing, plus up to another A$4.99mln in potential over-subscriptions, as it announced the completion of a maiden resource estimate for Icewine.
88 Energy is the operator of project Icewine with a 75% working interest.