Subiaco-based oil and gas explorer Promesa has opened its initial public offer in which it hopes to raise up to $3 million that will predominately be used to fund its interests in two projects in the United States.
The company is offering a minimum of 12.5 million shares at 20 cents each to raise a minimum of $2.5 million. Oversubscriptions of up to $500,000 will be accepted, the company said in its prospectus.
The IPO is being managed by Perth-based Armada Capital.
The company has struck an agreement with fellow Perth-based company Pryme Oil and Gas to acquire a 25 per cent interest in the Atocha gas project in central Louisiana.
Promesa has agreed to reimburse Pryme $411,000 for exploration costs of the project so far.
Promesa also has the option to farm into any working interest by Pryme in any prospect within the Four Rivers oil tenement areas, which extend from Louisiana to Mississippi.
So far, Pryme does not hold an interest in Four Rivers, however it last month signed a non-binding agreement with the tenement holder, Telluride Exploration, which can offer Pryme the opportunity to acquire up to 53.71 per cent of the wells.
On the Promesa board is non-executive chairman Solomon Majteles, executive director Ananda Kathiravelu and non-executive directors John Prichett and Philip Rodionoff.
Promesa plans to close the IPO on November 6 and anticipates listing on the Australian Securities Exchange on November 13.
