Oil and gas explorer and producer New Guinea Energy Ltd (NGE) made a disappointing debut on the Australian stock exchange today, following a $17.3 million float.
The Sydney-based company, which has not given forecasts for the 2008 financial year, had offered 80 million shares at 25 cents each under its initial public offer (IPO).
Its shares began trading at 17 cents, down 32 per cent, and soon marked a low of 16 cents before closing at 19 cents, down six cents or 24 per cent.
But the listing did take place in an overall weaker session for the local bourse, which fell in line with global markets following the shock assassination of Pakistan opposition leader Benazir Bhutto.
The Sydney-based company, which has not given forecasts for the 2008 financial year, had offered 80 million shares at 25 cents each under its initial public offer (IPO).
Its shares began trading at 17 cents, down 32 per cent, and soon marked a low of 16 cents before closing at 19 cents, down six cents or 24 per cent.
But the listing did take place in an overall weaker session for the local bourse, which fell in line with global markets following the shock assassination of Pakistan opposition leader Benazir Bhutto.
NGE said its IPO was "well supported" with more than 50 per cent of the shares subscribed by local and international institutions and the remainder by local investors.
NGE, which was formed in 2005, plans to use the capital raised to progress its six exploration tenements covering more than 52,000 square kilometres in Papua New Guinea, onshore of the Papuan basin.
"NGE has been approached by large companies interested in farming into its acreage and will now pursue a multi-pronged program, preparing for key field operations and accelerate discussions to select appropriate partners for future large scale exploration programs," it said.
NGE managing director Jeremy Towner said the company is ready to embark on the next stage of its development.
"This capital raising moves NGE field operations in PNG to the next stage to have the appraisal and exploration acreage portfolio tested with well drilling," Mr Towner said.
"Areas adjacent to NGE's licences in that basin already have discoveries of over one billion barrels of oil and 15 trillion cubic feet (TCF) of gas."
Mr Towner said NGE's technical team has mapped six drillable prospects and 53 leads with an average size of over 60 million barrels of oil equivalent (mmboe) of in-place petroleum resource potential.
"So we have a long future for exploration and potential discovery and development ahead of us," he said.
NGE, which was formed in 2005, plans to use the capital raised to progress its six exploration tenements covering more than 52,000 square kilometres in Papua New Guinea, onshore of the Papuan basin.
"NGE has been approached by large companies interested in farming into its acreage and will now pursue a multi-pronged program, preparing for key field operations and accelerate discussions to select appropriate partners for future large scale exploration programs," it said.
NGE managing director Jeremy Towner said the company is ready to embark on the next stage of its development.
"This capital raising moves NGE field operations in PNG to the next stage to have the appraisal and exploration acreage portfolio tested with well drilling," Mr Towner said.
"Areas adjacent to NGE's licences in that basin already have discoveries of over one billion barrels of oil and 15 trillion cubic feet (TCF) of gas."
Mr Towner said NGE's technical team has mapped six drillable prospects and 53 leads with an average size of over 60 million barrels of oil equivalent (mmboe) of in-place petroleum resource potential.
"So we have a long future for exploration and potential discovery and development ahead of us," he said.
Via: The Age
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