GCI88 Energy proposes £5.3m placing to fund projects in Alaska and Namibia
() , an Alaska-focused hydrocarbon explorer, proposed to raise c. A$9.9m (£5.3m) via a placing of new ordinary shares at a price of A$0.0045 (equivalent to £0.0023). For shares issued in Australia, investors will be granted options exercisable at A$0.0075 before 15 December 2026, and for shares issued in the UK, investors will be granted warrants exercisable at £0.0039 before 15 December 2026.
The placing price is equivalent to a discount of 18.20% to 88 Energy's closing price on the ASX on 27 November 2023, and a discount of 23.6% to the volume-weighted average price on the ASX for the 10 days to 27 November 2023. shares have been placed in a trading halt on the ASX, pending the release of an announcement in relation to the completion of the placing.
The placing is being conducted through a bookbuilding process managed by Cavendish Capital Markets in the UK and EurozHartleys and Inyati Capital in Australia. The bookbuild opened with immediate effect following the announcement.
The net proceeds of the placing, together with 88 Energy's existing cash reserves (A$10.2m as of 30 September 2023) should strengthen 88 Energy's balance sheet and provide it with sufficient working capital to fund flow testing of the Hickory-1 well at its flagship Project Phoenix on Alaska's North Slope. Additionally, proceeds will help fund the initial farm-in exploration activities at 88 Energy's recently acquired Owambo Basin acreage in Namibia (including 2D seismic acquisition). Following completion of the placing, 88 Energy should have sufficient cash to fund its ongoing working capital requirements and general and administrative overheads for at least another 12 months.
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