REG - 88 Energy Limited - Successful Placement to Raise A$5 Million

88 EnergyAnnouncement

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RNS Number : 3543Y  88 Energy Limited  27 March 2026

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION
(EU) NO. 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW PURSUANT TO THE EUROPEAN
UNION (WITHDRAWAL) ACT 2018, AS AMENDED BY VIRTUE OF THE MARKET ABUSE
(AMENDMENT) (EU EXIT) REGULATIONS 2019. UPON THE PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS
CONSIDERED TO BE IN THE PUBLIC DOMAIN.

27 March 2026

88 Energy Limited

 

Successful Placement to Raise A$5 Million

88 Energy Limited (ASX: 88E, AIM: 88E, OTC: EEENF) (88 Energy or the Company)
is pleased to advise that it has successfully completed a bookbuild to
domestic and offshore institutional and sophisticated investors at an issue
price of A$0.029 (£0.01508) per share, raising approximately A$5.0 million
(approx. £2.6 million) before costs (the Placement).

The Placement was heavily oversubscribed, reflecting strong support for the
Company's sharpened, Alaska-focused exploration strategy, expanded North Slope
acreage position, and the potential of the Company's forward programme of
activities. The funds raised will strengthen the Company's balance sheet and
accelerate key pre-drilling activities, including permitting and well planning
for the Augusta‑1 exploration well, currently scheduled to spud in Q1
CY2027 1 .

 

Placement Highlights:

·    Strong support endorses the Company's sharpened, Alaska-focused
exploration strategy and recognises the significant scale, quality and
development potential across the Company's expanded North Slope portfolio.

·    Proceeds raised will accelerate critical pre-drilling activities
ahead of the planned Augusta-1 exploration well, currently scheduled to spud
in Q1 CY2027.

·    The Augusta-1 well has been designed to target low-risk Ivishak and
Kuparuk reservoirs, which host a combined total estimated Prospective Resource
of 64 MMbbls (2U, gross unrisked). 2   3 

·    Additional Brookian upside expected and to be considered in final
well location selection.

·    South Prudhoe farm-out process underway, with multiple parties
currently evaluating the acreage and participation in the Augusta-1 well.

88 Energy Managing Director, Ashley Gilbert, commented:

This strongly supported Placement, including participation from a number of
new domestic and offshore investors, represents a clear endorsement of our
sharpened Alaska-focused strategy and the exciting potential of our expanded
North Slope portfolio. We have an exciting drilling prospect at the Augusta-1
well, with multi-zone exploration potential backed by a wealth of data and the
added advantage of proximity to established infrastructure and producing
fields. This provides the Company with a very exciting opportunity to unlock
real and significant value, as any new-discovery success has a clear and
accelerated pathway to development.

Proceeds raised place us in a strong position to accelerate key pre-drilling
activities, advance permitting and well planning, and progress farm-out
discussions from a position of financial strength."

 

Augusta-1 Exploration Well

The Augusta prospect is a high‑impact, multi‑zone opportunity within the
North‑West Lease Area of 88 Energy's South Prudhoe Project. The Augusta-1
exploration well is set to be drilled adjacent to existing oil discoveries and
producing fields and is designed to test the high‑quality stacked Ivishak
and Kuparuk reservoirs. These target reservoirs have been estimated to host a
combined 2U, gross unrisked Prospective Resource of 64 MMbbls 4   5 .

Augusta is the highest-priority target within the Company's portfolio and
represents a material, relatively low-risk value creation opportunity.
Location selection and well planning are supported by well-defined structural
traps and seismic amplitude anomalies consistent with proven nearby
reservoirs.

Permitting and planning activities continue, with all of the potential
drilling locations offering clear access pathways. This provides flexibility
for farm-out structuring, potential future appraisal drilling following
success and optimisation to incorporate shallower Brookian targets currently
under evaluation. Final well location selection for Augusta-1 is expected by
mid-2026.

Placement proceeds, together with existing cash reserves, will be applied
towards securing long-lead items and other critical pre-drilling activities
such as drill rig contracting. Negotiations are underway targeting agreement
of final terms in Q2 CY2026, ahead of the planned winter drilling window in Q1
CY2027.

In parallel, the Company continues to advance its farm-out strategy, with
multiple parties currently evaluating their potential participation in the
South Prudhoe Project.

Table 1: South Prudhoe Prospective Resource estimates:

 South Prudhoe Total    Hub        Reservoir(2)  Unrisked Prospective Oil and NGLs Resources (MMbbls)(1,2)
 Probabilistic Method                            Low (1U)             Best (2U)           High (3U)  MEAN      GCOS(2)
 Augusta                N-W        Iv, Kup       45.2                 64.4                91.3       66.7      48%
 Augusta North Cluster  N-W        Iv, Kup       16.4                 23.1                32.4       23.9      62%
 Lasso                  N-W        Iv, Kup       7.8                  11.0                15.2       11.3      39%
 Greater Spurr Cluster  S-E        Iv            11.5                 23.6                49.9       28.0      43%
 Eaglecrest             S-E        Iv, SB        4.9                  9.1                 17.2       10.3      47%
 Donoho O and N sands   S-E        SB            68.4                 160.7               370.2      196.8     22%
 Tressler               S-E        SB            44.9                 106.0               251.2      132.2     23%
 Hunter                 S-E        SB            6.4                  17.4                45.8       22.8      24%
 Cooper Canyon          S-E        SB            39.6                 91.3                211.3      112.6     26%
 Total (100% Gross)                                         245.1               506.6     1,084.5    604.6
 Total (83.33% Net Entitlement)                             204.2               422.2     903.7      503.8

 

Placement Details

The Placement will involve the issue of 173,602,563 new ordinary shares (New
Ordinary Shares) at an issue price of A$0.0290 (£0.01508) per share (the
Issue Price). The shares issued pursuant to the Placement will be issued under
the Company's available placement capacity pursuant to ASX Listing Rule 7.1
and are not subject to shareholder approval

Subject to shareholder approval, the Company will also issue:

·     unlisted options (Options) on a 1‑for‑2 basis (1 option for
every two shares subscribed for) to ASX investors participating in the
Placement. The Options are exercisable at A$0.0435 per share and expire three
years from the date of issue; and

·     unlisted warrants (Warrants) on a 1‑for‑2 basis (1 warrant for
every two shares subscribed for) to UK investors participating in the
Placement. The Warrants are exercisable at £0.02262 per share and expire
three years from the date of issue.

Issue Price discounts:

·     19.4% discount to the closing price of A$0.0360 on 24 March 2026;
and

·     20.9% discount to the ASX VWAP for the 10 trading days prior to 23
March 2026.

The New Ordinary Shares will rank pari passu with the Company's existing
shares. ASX settlement is scheduled for 2 April 2026. Admission of the New
Ordinary Shares to trading on AIM is expected to occur at 8:00am (UK time) on
7 April 2026.

Placement proceeds will be applied toward:

·     Planning, permitting and other long lead items for the August-1
well, including the securing of a rig for the Augusta-1 well;

·     Funding the balance of the North Slope lease bid commitments and
first year rental payments; and

·     Acquiring the Kad River 3D dataset and reprocessing the Kad River
and Schrader Bluffs 3D seismic data.

Euroz Hartleys acted as Sole Lead Manager to the Placement on ASX. Cavendish
Capital Markets Limited acted as Nominated Advisor and Joint Broker to the
Placement in the UK, and Hannam & Partners acted as Joint Broker in the
UK. A commission of 6% is payable to the Lead Manager and Joint Brokers.  In
addition, subject to shareholder approval, the Company will issue 28,933,761
Unlisted Options (exercisable at A$0.0435 on or before the date which is 3
years from the date of issue) in total to the Lead Manager and Joint Brokers.

 

Capital Structure

Following the issue of the New Ordinary Shares, the Company will have
1,330,952,980 ordinary shares on issue, all of which have voting rights. The
figure of 1,330,952,980 ordinary shares may be used by shareholders as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or change their interest in, the
Company.

Pursuant to the requirements of the ASX Listing Rules Chapter 5 and the AIM
Rules for Companies, the technical information and resource reporting
contained in this announcement was prepared by, or under the supervision of,
Dr Stephen Staley, who is a Non-Executive Director of the Company. Dr Staley
has more than 40 years' experience in the petroleum industry, is a Fellow of
the Geological Society of London, and a qualified Geologist/Geophysicist who
has sufficient experience that is relevant to the style and nature of the oil
prospects under consideration and to the activities discussed in this
document.

 

Dr Staley has reviewed the information and supporting documentation referred
to in this announcement and considers the resource and reserve estimates to be
fairly represented and consents to its release in the form and context in
which it appears. His academic qualifications and industry memberships appear
on the Company's website and both comply with the criteria for "Competence"
under clause 3.1 of the Valmin Code 2015. Terminology and standards adopted by
the Society of Petroleum Engineers "Petroleum Resources Management System"
have been applied in producing this document.

 

This announcement has been authorised by the Board.

 

Media and Investor Relations:

 

 88 Energy Ltd

 Ashley Gilbert, Managing Director

 Tel: +61 (0)8 9485 0990

 Email:investor-relations@88energy.com

 Fivemark Partners, Investor and Media Relations
 Michael Vaughan                                  Tel: +61 (0)422 602 720

 EurozHartleys Ltd
 Chelsey Kidner                                   Tel: +61 (0)8 9268 2829

 Cavendish Capital Markets Limited                Tel: +44 (0)207 220 6939
 Derrick Lee
 Pearl Kellie

 Hannam & Partners
 Leif Powis / Neil Passmore                       Tel: +44 207 907 8500

 

 1  Timing and drilling of the Augusta-1 well subject to funding

 2  Cautionary Statement: The estimated quantities of petroleum that may be
potentially recovered by the application of a future development project
relate to undiscovered accumulations. These estimates have both an associated
risk of discovery and a risk of development. Further exploration, appraisal
and evaluation are required to determine the existence of a significant
quantity of potentially moveable hydrocarbons.

 3  Refer to ASX announcement on 19 February 2026 for full details. 88E
confirms that it is not aware of any new information or data that materially
affects the information included in this announcement and that all material
assumptions and technical parameters underpinning this announcement continue
to apply and have not materially changed.

 4  Refer to Cautionary statement

 5  Refer to ASX Announcement dated 19 February 2026 and specifically refer to
pages 4, 5, 7 and 8, and Schedule 1,2 and 3 for further details. Summary table
includes arithmetic totals for Ivishak (Iv), Kuparuk (Kup) and Schrader Bluff
(SB) which includes Upper, Mid and Lower Schrader Bluff (USB, MSB & LSB
respectively). GCOS = Geological chance of success.

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