moves on backdoor listing of eastern petroleum

International Petroleum moves on backdoor listing of Eastern Petroleum.

Michael Bennet From: The Australian February 09, 2010

THE Tony Sage-run International Petroleum has moved ahead with the backdoor listing of Frank Timis's Eastern Petroleum into the company, launching a $30 million equity injection as part of the deal.
International Petroleum last October entered into an agreement to acquire all of the shares in UK-based Eastern subject to the company raising $20m. The deal would give Mr Timis about 70 per cent of International Petroleum, formerly known as International Goldfields.

International Petroleum today said it had lodged a prospectus with the Australian Securities and Investments Commission to raise a maximum of $30m at 30 cents per share, with a " prominent " UK broker - believed to be Sage's pals at Mirabaud Securities - co-ordinating the issue. Mr Sage was last involved with Mirabaud when it acted as the UK placing agent on Cape Lambert's failed $174m float of Q Copper last week.

International Petroleum said the raising was largely being promoted to European and North American institutions and sophisticated investors, but is believed to have already attracted local interest. Perth-based law firm Steinepreis Paganin is advising on the legal side, with Professional Public Relations taking care of the PR.

If successful, the raising will allow International Petroleum to relist on the Australian Securities Exchange as early as late this month. The cash injection will add to the $10m International Petroleum recently received from the sale of its Tubatse platinum project to NWKE. International Petroleum is expecting another $50m from the sale shortly.

The backdoor listing will give International Petroleum Eastern's 50 per cent stake in the Alakol basin licence block in eastern Kazakhstan, which Eastern holds through its subsidiary, North Caspian Petroleum. But it will cost International Petroleum about 675 million shares, or 70 per cent of the company, it will issue to Eastern's shareholders.

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