Livingstone lists at premium on ASX
September 14, 2005 - 1:49PM
New oil and gas explorer Livingstone Exploration Ltd made a smooth entry into public life, listing on the Australian Stock Exchange at a premium after raising $3 million in its initial public offering (IPO).
Livingstone issued 15 million shares at 20 cents each in its IPO, which opened at 35 cents.
All the funds raised will go to its key asset, half of the Forbes gas project in California, in joint venture with Australian company Orchard Petroleum Inc.
Livingstone paid Orchard $US830,000 in cash for its interest and will also fund two thirds of the cost of drilling three exploration wells at the project.
The project is located in the Forbes sandstone area, which is a major proven gas province and has high historical rates of exploration success.
Orchard, the operator of the joint venture, has to date drilled three holes, two of which resulted in discoveries and are already producing to market.
Drilling at the next three wells will start near the two discoveries in October or November depending on drill rig availability.
With the funds raised from its IPO Livingstone can participate in five wells and said it would use a combination of future capital raisings and cashflow to fund future exploration.
By 1308 AEST shares in Livingstone were stronger at 40 cents.
© 2005 AAP
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