++++++++++++++++++++++++++++++++++ UIL Energy (not yet listed)
IN one sense UIL is just another oil and gas tiddler, but at least it’s targeting the right address and management has form … in a good way.
Run by former Bow Energy chief John De Stefani, UIL has quietly gathered diversified acreage in the onshore Perth Basin, with conventional and unconventional targets in mind. “Since I finished at Bow we have actively pursued acreage with high equity ownership and with ourselves as operator,’’ De Stefani says.
UIL is in the throes of raising between $4.2m and $6m in an IPO, valuing the whole company at about $23m.
De Stefani says UIL has one of the biggest wholly owned positions in the basin, which hit the headlines last week after AWE announced a “significant” discovery at its Senecio field.
Also last week, Empire Oil & Gas struck a $16m deal with ERM Power to buy out the latter’s joint venture acreages in the coveted basin. Overall, De Stefani says, other operators have committed $80m to drilling activity in the basin: “We are feeding off a lot of the activity around us.’’
De Stefani built Bow from a $50m to $550m entity, before it was acquired by Arrow Energy in early 2012.
Nearism aside, there’s the WA gas supply dynamics as offshore molecules are diverted to LNG export projects, leaving heavy users such as Alcoa feeling vulnerable.
Under the offer, which closes tomorrow, punters subscribe for shares at 20c with a free attached option, exercisable at 24c by December 2018.
By then UIL should be another Bow, or else scouring for new biotech or graphite opportunities.
Spec buy.
EGO Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
