Oil and gas company 88 Energy Ltd (OTCMKTS:EEENF) was back in focus last week among investors and ended the week with gains of 3%. While the gains in the stock may be modest, it is important to point out that last Thursday, the company made an important announcement that investors could consider looking into.
The company provided the much awaited confirmation of the fact that it closed its equity placing transaction that raised as much as A$23.96 million. It should be noted that the amount that 88 Energy raised through the equity placement was the maximum amount that it could raise through this move without an approval of shareholders.
The oil exploration company, which primarily has interests in Alaska, had commenced that equity placement at the start of last week and the completion is a significant development for 88 Energy. It should be noted that at this point in time, the company is looking to advance its work on the flagship Merlin project and the fresh capital is expected to help it in this context.
The company noted that the proceeds are going to be deployed towards the work related to the Merlin 2 appraisal well.
