West Perth-based oil and gas exploration company GB Energy Ltd aims to raise $4 million through its initial public offer, to fund exploration of seven licences in the Czech Republic.
GB, which will offer 20 million shares at 20 cents each, will provide $2 million over two years to fund work on the projects, through GBE Exploration, a joint venture company extablished with UK-based Imperial Petroleum Ltd.
GB will hold a 62.5 per cent stake in GBE Exploration, with Imperial owning the remainder. Imperial, which has a working interest of 100 per cent and a net production revenue interest of 85 per cent in each licence, with the remainder being held by Czech oil and gas service company Unigeo a.s.
GB Energy may, at its discretion, increase its interest in GBE Exploration from its initial 62.5 per cent interest to 75 per cent by investing a further $1.5 million in GBE Exploration.
The company has board representatives on Imperial Petroleum Ltd and will have a significant equity interest in that company of up to 33.3 per cent.
GB is chaired by Kirke Securities Ltd founder Graeme Kirke, who will also serve as managing director. He will be joined on the board by technical director and Isis Petroleum Consultants founder Paul Robinson, founding Managing Director/Chairman of Red Back Mining Inc Ross Ashton and Ascent Capital Pty Ltd director Gary Steinepreis.
The deal is not underwritten and oversubscriptions will not be accepted.
Ord Corporate Pty Ltd will act as investigating accountant to the offer, with Fairweather Lemonis providing legal advice.
The offer opened on April 16, and will close May 16.
