REG - 88 Energy Limited - Placement to raise A$14.9M

88 EnergyAnnouncement

11/08/2022 08:30

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RNS Number : 6961V  88 Energy Limited  11 August 2022

 

This announcement contains inside information

 

11 August 2022

 

88 Energy Limited

PLACEMENT TO RAISE A$14.9M

Highlights

·   Share placement commitments to raise A$14.9 million gross proceeds.

·   Issue price of A$0.009 per share represents a 18.2% discount to last
closing price of A$0.011 (9 August 2022) and a 18.9% discount to the VWAP on
the ASX for the ten calendar days to 9 August 2022.

·   Funds to be directed towards the planned Icewine East 2023 exploration
well targeting 1.03 billion bbls of oil*, in addition to new ventures
opportunities and working capital.

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 international institutional and sophisticated investors to raise A$14.9
million (equivalent to £8.59m) before costs (the Placement). This is to be
achieved through the issue of 1,655,555,556 fully paid ordinary shares in the
Company (the New Ordinary Shares) at an issue price of A$0.009 (equivalent to
£0.0052) per New Ordinary Share) (the Placement Price).

The funds raised under the Placement together with the Company's existing cash
reserves (A$6.1 million (equivalent to £3.52m) as at 31 July 2022), are to
be used to fund the planned Icewine East well long lead, pre-planning and
permitting activities including planning for a flow test program,
contingencies, new ventures portfolio expansion opportunities, and working
capital.

The Company is continuing to advance its planning for an Icewine East well in
2023, which is designed to include at least one flow test in the 4 reservoir
targets, the subject of the recent Icewine East maiden and independently
certified, total Prospective Resource estimate of 1.03 billion barrels of
oil*. The resource estimate is the result of a period of review of an
extensive data suite that included seismic data, logs from Icewine-1 and
nearby wells adjacent to the Icewine East acreage, in addition to the recently
completed petrophysical analysis and mapping.

The continuing interpretation of the Franklin Bluff's 3D seismic, including
AVO analysis to define 'sweet spots' in each of the plays targeted, will
assist with determining optimal future exploration and appraisal drilling
locations in the Icewine East acreage.

88 Energy Managing Director, Ashley Gilbert, commented:

"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 of oil*. The Icewine East acreage
has been de-risked by the recent and ongoing Pantheon drilling and flow tests
on their adjacent acreage, as well as data from the Icewine-1 well logs and
the recently leased Franklin Bluffs 3D data set.

 

 *Gross mean total prospective resources.  Refer to ASX announcement on 10
 August 2022 for further details and refer to Cautionary Statement.

 

This work substantially increases our confidence in unlocking the potential of the Icewine East acreage, and the Company looks forward to updating shareholders on our planned exploration well in 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."

 

Euroz Hartleys Limited acted as Sole Lead Manager and Sole Bookrunner to the
Placement. Cenkos Securities Plc is acting as 88 Energy's Nominated Adviser
and Sole Broker to the Placement in the United Kingdom. Inyati Capital Pty Ltd
(Inyati) acted as Co-Manager to the Placement. Commission for the Placement
was 6% (plus GST) of total funds raised across Euroz Harleys Limited, Inyati
Capital Pty Ltd and Cenkos Securities Plc. In addition, the Company will issue
90,000,000 Unlisted Options (exercisable at $0.02 on or before the date which
is 3 years from the date of issue) in total to the managers of the Placement.
The Broker Options will be subject to shareholder approval.

 

The issue of the 1,655,555,556 New Ordinary Shares is not subject to
shareholder approval as the issuance will fall within the Company's placement
capacity pursuant to ASX Listing Rule 7.1. The New Ordinary Shares will rank
pari passu with the existing ordinary shares in the Company, with DVP
settlement scheduled for 19 August 2022 and allotment 22 August 2022.
Application has been made for the New Ordinary Shares to be admitted to
trading on AIM. It is expected that admission of the New Ordinary Shares to
trading on AIM will occur at 8.00 a.m. on 22 August 2022.

 

Following the issue of the New Ordinary Shares, the Company will have
18,265,762,962 ordinary shares on issue, all of which have voting rights. The
figure of 18,265,762,962 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.

 

As referenced in the quote from the Managing Director above, the Company notes
that it is continually in discussions with various parties with respect to new
venture opportunities across the asset life cycle to expand its portfolio of
assets and opportunities.  Such potential opportunities are not announced
until such time as the Company has agreed the material commercial and legal
terms with the relevant counterparty or counterparties, and customary due
diligence is completed. Until the material commercial and legal terms have
been agreed and due diligence completed, there can be no guarantee that such
discussions, whether or not they have been disclosed, will lead to the
announcement or completion of a binding agreement.

 

 

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 movable hydrocarbons.

 

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 37 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 8 9485 0990

 Email:investor-relations@88energy.com

 Fivemark Partners, Investor and Media Relations  Tel: +61 410 276 744

 Andrew Edge / Michael Vaughan                    Tel: +61 422 602 720

 EurozHartleys Ltd                                Tel: +61 8 9268 2829

 Dale Bryan

 Cenkos Securities                                Tel: +44 131 220 6939

 Neil McDonald / Derrick Lee

 

 

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