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WELLINGTON - Shares in L&M Petroleum, which plans to look for oil and gas in Southland, debuted on the New Zealand stock exchange today.
The company raised A$20 ($22.9) million in an initial public offering (IPO) last month, offering 100 million shares at A20c (NZ22.9c), and will be dual-listed in this country and Australia.
L&M Petroleum, an offshoot of the L&M Group, is the first new listing for 2007 on the NZX. The shares were quoted from 1pm today, opening at 25c but quickly falling back to 22c.
The capital raised last month is to fund the drilling of 11 onshore wells starting in April 2007 in the Western Southland Basin.
L&M chairman Geoff Loudon said previously he and other private investors have spent more than $6.5 million assembling five petroleum exploration permits covering the major portion of the basin, and doing initial exploration and drilling.
The company had identified 10 prospects and 16 leads ready for further exploration and drilling across a total onshore and offshore area in the Western Southland Basin covering 8800sq km.
Today managing director and ceo John Bay said the company was at the start of exploration with the objective of making L&M Petroleum one of New Zealand's premium oil and gas producing companies.
Following the IPO, and a one-for-two bonus option exercisable at 25c per share in three months, the public will hold 55.6 per cent of L&M ordinary shares.
- NZPA
