Next Investors logo grey

88 Energy hails “step change” $25 million raising


Published 22-APR-2016 11:07 A.M.


1 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

88 Energy (ASX | AIM: 88E) has hailed an oversubscribed $25 million placement as a “step change” moment.

The Alaska-focused oil and gas explorer told its shareholders of the placement today, issuing just over 715 million shares at 3.5c each to raise $25 million.

It was originally planned to only raise $10-15 million with a stretch goal of $20 million, but 88E said “due to the high calibre of the proposed investors” and the level of interest in the stock, the board decided to stretch the goal again to $25 million.

Even at $25 million, 88E said, the offer was strongly oversubscribed.

The cash will go towards the funding of a 2D seismic campaign it currently has underway, and payments for the 174,000 acres it picked up as part of a government auction last November.

It will also add general working capital as 88E and joint venture partner Burgundy Xploration go about planning a follow-up to the Icewine-1 well – at this stage being planned as a horizontal well due to spud in the first quarter next year.

That well will give investors greater look through on the production capacity of the target HRZ shale, after Icewine-1 effectively de-risked technical “Achilles heels”.

Managing director of 88E Dave Wall said the strong support for the raising was testament to the technical success it had at Icewine-1.

“The level of support the company received from institutional and sophisticated investors in Australia and the UK is a step change to only a few short months ago, reflecting the substantial de-risking that has occurred at Project Icewine as a result of the recent Icewine-1 exploration well,” he said.

He also said the funding would effectively bring 88E “to the doorstep” of Icewine-2H, the follow-up to Icewine-1.

Earlier this month it outlined bullish numbers from DeGolyer and Macnaughton which indicated that the Icewine project could have as much as 1.4 billion barrels of recoverable oil.

Internal estimates, however, put this figure as high as 3.6 billion barrels.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.