Perth-based oil and gas explorer Zeta Petroleum has had a harsh introduction to life on the ASX, with its shares falling to 13.5 cents from its issue price of 20 cents on debut today.
Zeta officially joined the list of the ASX today, after last month’s $8.35 million initial public offering closed oversubscribed.
The company’s flagship assets are the Bobucu gas field and Jimbolia oil field, both of which are located in Romania.
Zeta will look to commence exploration drilling at Bobucu, ramping up to full production by 2013.
Industry analysts consider the Bubocu and Jimbolia projects to be low risk, because the fields have already produced oil and gas and are essentially new workings of abandoned wells.
Upside price potential is also provided by the deregulation of Romanian gas prices.
Zeta is also understood to be looking to complete an acquisition shortly after listing.
Its was lead managed by Patersons Securities and supported by Pursuit Capital.
The company’s stock finished trade today at 13.5 cents, down significantly from the issue price of 20 cents.