Longreach, Southern Cross plan $250m IPO

Sydney-based Longreach Oil, which has interests in the Carnarvon Basin, and Southern Cross Exploration plan to raise $250 million for the float of a newly formed oil and gas company.

In a brief update, the company said that Offshore Oil has been incorporated for the purpose of proceeding to an IPO.

"Offshore Oil is negotiating to acquire equity interests in Australian and overseas oil companies and intends to participate directly in oil and gas joint ventures when suitable opportunities are identified," Longreach said.

It added that the target for the IPO will be $250 million through $1 shares.

Longreach and Southern Cross shareholders will be entitled to priority applications in the IPO.

Longreach holds a near 10 per cent interest in each of the three Carnarvon Basin tenements. Other shareholders are Rough Range Oil, Indigo Oil, Falcore Oil, Vigilant Oil and Jurassica Oil and Gas, which holds the majority interest in all the tenements.

Southern Cross holds a small interest in the Bigrlyi uranium joint venture in the Northern Territory.