19/12/2007 - 12:16

East Energy up 60% in ASX debut

19/12/2007 - 12:16

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Perth-based coal exploration company East Energy Resources Ltd has made a successful start to public life, with its share price closing 60 per cent stronger at 40 cents, on an issue price of 25 cents.

East Energy up 60% in ASX debut

Perth-based coal exploration company East Energy Resources Ltd has made a successful start to public life, with its share price closing 60 per cent stronger at 40 cents, on an issue price of 25 cents.

A total of 408,500 shares were traded in a day where the stock went as high as 43 cents, a 78 per cent premium.

The company recently raised $4.5 million through an Initial Public Offer of 18 million shares, which closed fully subscribed.

The ASX listing will help East Energy to fast track its exploration and development activities at its two recently acquired coal projects in Queensland - Norwich Park in the Bowen Basin, and Blackall in the Adavale Basin.

The company intends to undertake the exploration work on the projects with the aim of further defining the coal measures and proving up a coal resource in accordance with the JORC code.

On listing the company will have just over 90.5 million shares on issue.

East Energy non-executive chairman Mr Terence Byrt said that geological fieldwork had commenced on its granted tenement Norwich Park EPC 1066.

Further exploration and Drilling would commence at Norwich Park in the first quarter of next year.

"We are ramping up exploration on both our tenements next year with 10,000 metres of drilling planned for our 803 square kilometres Norwich Park project and a full desk top review of the thermal coal exploration program carried out on our 900 square kilometres Blackall tenement in 1974," Mr Byrt said.

"We've also budgeted for drilling to commence at the Blackall project EPC 1149 once granted in the New Year, which is possible given our success in securing uninterrupted access to drill rigs and geological staff in the region."

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