88 Energy launches discounted placing to fund Icewine works

Exploration outfit 88 Energy announced plans to raise up AUD $10m (£5.6m) on Wednesday through a discounted share placing.

88 Energy intends to use the funds for the on-going evaluation of its acreage in Alaska, targeting both conventional and unconventional prospectivity.

The fundraiser will see the AIM-listed group sell its placing shares at a price of AUD 1.25 cents, a 20% discount to its recent market price, and follows hot on the heels of 88E's high-profile USD $26m farm-out agreement with Premier Oil.

88Energy will set aside some of the proceeds to support costs associated to the planned Charlie well at its Project Icewine asset on Alaska's North Slope and also cover lease rental payments due on the acreage, interest payments on its debt facilities and ongoing working capital requirements.

As of 0850 BST, 88E shares had dropped 4.52% to 0.69p.