L&M Petroleum launches $20m IPO
New Zealand-focused oil and gas explorer L&M Petroleum Ltd has launched a $20 million initial public offering (IPO) and expects to list before Christmas.
L&M is issuing 100 million shares at 20 cents each through its IPO, which is fully underwritten by Intersuisse in Australia and McDouall Stuart in New Zealand.
The company will dual list on the Australian Stock Exchange and the New Zealand Exchange.
The explorer has compiled a portfolio of exploration permits covering a portion of the Western Southland Basin in NZ and expects to start a drill campaign in April.
The Western Southland Basin is the south faulted eastern extension of the Taranaki Basin, New Zealand’s major commercial oil and gas province with more than 340 wells.
L&M is backed by Geoff Loudon who is a founder and chairman of Niugini Mining Ltd, a director of Lihir Gold and chairman of Nautilus Minerals Inc.
Mr Loudon is chairman of L&M and is one of three seed investors who have funded the activities of the company to date.
“The company’s onshore prospects have potential oil and gas initially in place of close to 400 million barrels and 194 billion cubic feet (bcf) respectively,” he said.
“We plan to commence an active drilling program of four onshore wells in the first half of 2007.
“Our initial well at Sharpridge Creek has proved the existence of a working hydrocarbon system, the challenge now is to identify commercial accumulations.”
New Zealand power generator Mighty River Power Ltd has also entered into an agreement with the explorer to farm into one of its onshore permits.
