Mid-cap oil producer Coogee Resources Ltd has launched its prospectus, aiming to raise $380 million and list on the Australian Stock Exchange.
Mid-cap oil producer Coogee Resources Ltd has launched its prospectus, aiming to raise $380 million and list on the Australian Stock Exchange.
In the process of listing, a move first revealed earlier this year by WA Business News, the company will issue between 176 million to 211 million shares at a price ranging from $1.90 to $2.33 each.
The company aims to raise a total of $693 million to develop its flagship Montara oil project in the Australian waters of the Timor Sea.
Coogee Resources chief executive Peter Hood told reporters at the launch that the company's aim was to bring the 37 million barrel Montara project online in the third quarter of 2008.
"We think the current tight supply-demand balance, driving growth from Asia, will give us a good oil price that counts for us in 2008 when Montara comes on-stream," he said.
Coupled with the IPO, Coogee Resources is also planning to raise an additional $313 million through a proposed debt facility.
Over the longer term, Coogee Resources plans to participate in a proposed floating gas-to-liquids methanol production facility to commercialise a potential 834.4 billion cubic feet of contingent offshore gas resources.
"This project gives us the opportunity to add a stable 30-year cash flow to the business, 1.3 million tonne per annum of methanol is equivalent to 5.5 million barrels of energy equivalent," Mr Hood said.
"There is a ready growing Asian market, we will be producing very close to that market with a freight advantage over any other producer.
"We are in discussion with four major traders who are attracted to the fact this is significant methanol production in the region."
Mr Hood said the proposed methanol project would utilise "stranded" gas fields which are not big enough to economically pipe to an onshore liquefied natural gas plant.
Coogee Resources has estimated it will cost $US800 million to $US900 million to bring the project online and is aiming for a 2012 start-up.
The company already produces oil from the Jabiru and Challis joint venture in the Timor Sea of which it is the operator and major stakeholder.
Former Woodside CEO John Akehurst is the company's deputy chairman.
Only 50 per cent of company shares will be floated in this share issue, with the remainder to stay with current company shareholders.
Company chairman Gordon Martin told reporters today that he was not considering a similar float for related company Coogee Chemicals Ltd.