South Perth-based coal seam gas explorer Pure Energy Resources has launched its initial public offering, stating its ultimate goal is to become the first coal seam gas producer in Tasmania and a leader in the much larger Queensland industry.
The company aims to raise $5 million through the sale of 25 million shares at 20c each. Of these shares, 12.5 million will be offered in priority to shareholders of Arrow Energy NL, a Queensland-based coal seam gas producer.
Arrow has previously made a seed capital investment of $1 million in Pure, acquiring 9 million ordinary shares and 9 million 30c options. Arrow will have an initial 14 per cent shareholding after Pure's IPO, which could increase to a 25 per cent shareholding were Arrow to exercise all its options.
Arrow has also entered into a farm-in agreement with Pure, giving Arrow the opportunity to earn up to 50% interests in the coal seam gas rights in one of the two granted Queensland permits, and one of the three permit applications. At present, Arrow has not taken up this option.
Pure Energy's projects consist of five coal seam gas exploration permits in Queensland's Bowen Basin and a single coal seam gas permit in eastern Tasmania, covering 12,000 kmsq. The areas are close to existing infrastructure and growing energy markets.
Managing director Steve Beardsall has over 25 years of experience in the oil and gas industry.
He is joined on the board by non-executive director Terry Primeau, a principal founder of Bounty Oil and Gas NL who has 14 years experience as managing director of Focal Petroleum Engineering Ltd. Non-executive chairman Robert Day, a former director-general of the Queensland department of mines and energy, and non-executive director Shaun Scott are both appointees of Arrow.
Cygnet Capital is acting as lead manager and corporate adviser to the offer, with PKF chartered accountants acting as auditor and investigating accountant. The offer is not underwritten and oversubscriptions will not be accepted.
Applications open on July 5, and close August 18. The company hopes to commence trading on the ASX by September 8.
