drill tech firm coretrack ready to float

Drill tech firm Coretrack ready to float
Tim Boreham
August 28, 2006

A COMPANY seeking funds to further its "revolutionary" oil and gas drilling technology will list on Thursday after raising $3.1 million, including $900,000 in oversubscriptions.
Coretrack Limited holds the global intellectual property for core barrel capacity gauge technology, aimed at enhancing the accuracy of core samples taken during drilling.

The company will target both the local and global oil and gas sector, which spends $650 million a year on obtaining core samples.

"The multi-billion-dollar a year global oil and gas sector is watching the development of our drill technology extremely closely," Coretrack chairman Robert Collins said yesterday.

According to Coretrack's prospectus, $1.3 million will be earmarked on development and marketing, with $1 million spent on administrative costs and the offer expenses.

Perth-based Coretrack will be capitalised at more than $9 million after it lists its 47.7 million shares at 20c apiece. The company's backers and seed investors will account for about 70 per cent of the listed capital.

Coretrack had sought $2.25 million, with a minimum subscription of $1.8 million.

In other resources news, Hillgrove Resources yesterday said it would sell its 32.5 per cent interest in the Gunnedah Basin coal seam methane gas project in NSW.

The deal involves project partner Eastern Star Gas acquiring the stake, in return for a package of shares, options and convertible notes which will deliver Hillgrove an initial 19.9 per cent stake in Eastern Star.