88 Energy launches A$9.9m share placing

88 Energy (LON:88E) has launched a A$9.9 million (£5.3 million) placing with the proceeds earmarked to support its ambitions in Alaska and Namibia.

The new shares are to be sold at 0.45 Australian cents, which is an 18.20% discount from yesterday’s closing price on the Australian Securities Exchange.

It is being executed through a bookbuild process managed by brokers Cavendish Capital Markets in the UK, and EurozHartleys and Inyati Capital in Australia​​. Investors will be granted warrants and options as part of the placing​​.

88 Energy noted recently, in its financial report, that it already had a robust cash position, with A$10.2 million as of 30 September​​.

Proceeds from the capital raise will support the flow testing of multiple zones in the Hickory-1 well at Project Phoenix, along with the company’s initial farm-in exploration activities in Namibia, 88 Energy noted.

It will otherwise boost the company’s working capital​​ position.