88 Energy to raise £10.6m, shares suspended on ASX

AIM-listed oil and gas firm 88 Energy is planning to raise up to AU$17m (£10.6m) following the announcement that it will start drilling at its Alaskan site.

The company is to raise up to AU$17m at a price around AU$0.037 (£0.023) per share and pending the equity fundraising its shares have been suspended on the Australian Securities Exchange, while 88 Energy’s shares will continue to trade on AIM.

The fundraising will not be subject to shareholder as it intends to use the company's existing authorities.

88 Energy confirmed that no terms for any such fundraising has been agreed and that there can be no guarantee that it will be completed.

In February, the company said it had hired a rig contractor for the Icewine-2 appraisal well in Alaska for the second quarter of 2017.

Shares in 88 Energy were down 3.76% to 2.45p at 1049 GMT.