88 Energy Limited - Non-Renounceable Rights Issue / Open Offer
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION, OR DISTRIBUTION IN OR INTO
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Non-Renounceable Rights Issue / Open Offer
· Proposed Offer to be made on the basis of one (1) new share for every seven (7) shares held by qualifying shareholders as at 10th
· New shares to be issued pursuant to the Offer at
· Offer to be made available to qualifying shareholders in
· Designed to allow existing shareholders exposure to potentially transformational activity over the next 9 months
· Net proceeds of the Offer intended to be used for:
o Potential production testing at Winx-1 exploration well
o Possible cost overruns associated with the drilling of Winx-1
o Lease rentals and interest costs to maintain assets in good standing
o Ongoing geological and geophysical work
o Working capital and general administration
The Company is pleased to announce that it intends to launch the Offer which will provide the opportunity for existing qualifying shareholders to participate in a fundraising of up to approximately A
This activity includes the drilling of the high impact Winx-1 exploration well, scheduled for spud in
The Company is also progressing a farm-out of its conventional prospect portfolio at Project Icewine, where 1.75 billion barrels of net mean prospective resource has been delineated with 2D and 3D seismic. The process is targeted for completion by calendar year end 2018.
Additionally, the Company continues to progress evaluation of the HRZ shale play ahead of a planned farm-out in 1H2019 as well as finalising the resource potential on its Yukon Leases, where 3D seismic was recently acquired.
Details of the Offer
The full details of the Offer will be set out in an Offer Document, which is expected to be posted to all shareholders and lodged with the ASX on or around 5th
Qualifying shareholders will be offered the opportunity to acquire fully paid ordinary shares in the capital of the Company via the Offer. The Offer will be made on the basis of one (1) new share for every seven (7) shares held by qualifying shareholders as at the Record Date at an issue price of A
Qualifying shareholders will be those shareholders (or depositary interest holders) on the register at the Record Date (excluding holders who have a registered address or who are resident outside of
Qualifying shareholders will also be given the opportunity to apply for additional shortfall shares beyond their 1 for 7 entitlement. It is the intention of the Board to allocate additional shortfall shares on a pro-rata basis calculated using the number of shares held as at the close of the offer period.
The Company reserves the right to place any shortfall shares that are not taken up by existing shareholders at the discretion of the Directors.
The Directors of the Company have indicated their intention to take up their full entitlement under the Offer.
Assuming all entitlements are taken up under the Offer, the Company will issue approximately 795 million new shares, resulting in a total of approximately 6,366 million shares on issue.
The proposed timetable for the Offer is set out below. The dates are indicative only and the Company reserves the right to vary the dates, including the right to extend the closing date.
Announcement of the Open Offer
Appendix 3B, circular (Offer Document) and notice under section 708AA(2)(f) of the Corporations Act 2001 (Cth) lodged with the ASX
Notice to Securityholders
Expected ex-entitlement date for the Open Offer
Record Date for the Open Offer
Trading commences Ex-entitlement on ASX
Publication and despatch of this document and Application Forms
Open Offer Entitlements and CREST Excess
Entitlements credited to CREST stock accounts of Qualifying Depositary Interest Holders
as soon as practicable after
Recommended latest time for requesting withdrawal of Open Offer Entitlements and CREST Excess Entitlements from CREST
Latest time for depositing Open Offer Entitlements and CREST Excess Entitlements into CREST
Last date to extend
Latest time for splitting
Closing date - Latest time and date for receipt of completed Application Forms and payment in full under the Open Offer or settlement of relevant CREST instructions in respect of Depositary Interests (as appropriate)
Securities quoted on a deferred settlement basis
Expected date of announcement of the results of the Open Offer
Issue date of the Open
Admission and dealings in the Open
CREST member accounts expected to be credited with the Open
as soon as practicable on
Quotation of Open
"The Company has successfully completed several placements over the last four years, which have served to grow the asset base and diversify our portfolio, which is now stronger than it has ever been.
There are now four significant projects at mature stages that we believe can add substantial near to medium term value for our shareholders via drilling and/or farm-out transactions.
We have received feedback from a number of existing shareholders asking to be considered in future placements. The Board has listened and, consequently, we are pleased to provide the opportunity for all shareholders to participate in funding the upcoming potentially transformation period for the Company."
Pursuant to the requirements of the
Media and Investor Relations:
Email: [email protected]
Finlay Thomson, Investor Relations Tel: +44 7976 248471
Dale Bryan Tel: + 61 8 9268 2829
Cenkos Securities Tel: + 44 131 220 6939
Neil McDonald/Derrick Lee
88 Energy Alaska North Slope Assets Overview
The Project is located on an all year operational access road with both conventional and unconventional oil potential. The primary term for the State leases is 10 years with no mandatory relinquishment and a low 16.5% royalty.
Significant conventional prospectivity has been identified on recently acquired 2D and 3D seismic across the project acreage where 1.75 billion barrels of oil potential has been delineated (net mean prospective resource). A farm-out process is currently underway, with a deal targeted prior to 2018 year end.
The HRZ liquids-rich resource play was successfully evaluated based on core obtained in the Icewine#1 exploration well (
A map of the 88 Energy North Slope Acreage can be viewed at the link below:
Cautionary Statement: The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.
A Prospective Resources Report by DeGolyer and MacNaughton, was commissioned by 88 Energy to evaluate the unconventional resource potential of Project Icewine in
The Yukon Gold leases are located on the eastern border of the Central North Slope of Alaska and were acquired in 2018. 88 Energy via its subsidiary has a 100% working interest in these leases, totalling 14,194 acres. The leases contain an historic discovery well, Yukon Gold #1, which is currently being evaluated internally. 3D seismic was acquired in early 2018 to assist with this process and results are expected in 4Q2018. The leases are marked in yellow on the above map.
88 Energy is earning a 36% working interest in four leases (totalling 22,711 acres) immediately adjacent to the Horseshoe#1/1A oil discovery well. 88 Energy, with its consortium partners
This information is provided by RNS, the news service of the
Quick facts: 88 Energy Ltd
Market Cap: £29.93 m
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