Newly listed petroleum explorer Apollo Gas has seen its share price double after its stock exchange debut today.
Apollo has an interest in seven exploration licences covering 23,600 square kilometres in the Sydney-Gunnedah Basin in NSW.
The licences include potential coal seam gas and conventional hydrocarbon targets close to existing infrastructure, the company said ahead of its listing.
After an initial public offer price at 20 cents, shares in the company opened at 36 cents on debut and rose as high at 40.5 cents before falling to 40 cents in afternoon trade.
Around 1.6 million shares had changed hands.
Ahead of the listing, Apollo Gas chairman Peter Hood said his company saw significant opportunities in NSW to supplement gas supplies from other states.
‘‘Apollo Gas has a large and prospective exploration licence portfolio close to major gas markets and infrastructure including existing and planned pipelines, gas-fired power stations and transmission lines,’’ Mr Hood said in a statement.
‘‘We believe Apollo Gas is in an exciting position with experienced farm-in partners, Arrow Energy and Santos,’’ he said.
Arrow Energy owns 21 per cent of Apollo, and Santos has a farm-in agreement that allows it to earn a 50 per cent interest in one of Apollo’s coal seam gas prospects.
‘‘Over the next two years, up to $35 million in total may be spent by Apollo Gas, Arrow Energy and Santos to advance the development of Apollo Gas exploration licences,’’ Mr Hood said.
MEL Price at posting:
68.0¢ Sentiment: Buy Disclosure: Held
