Oil and gas explorer European Energy Limited has opened its Initial Public Offer (IPO) to raise A$5 million with a view to listing on the ASX in late March.
Through the IPO, European Energy will issue 25 million shares at a price of $0.20 each raising up to $5m with further over-subscriptions of up to $2.5m. The company will use the funds raised in the IPO to kick-start a strategic exploration program and is targeting the drilling of its first exploration well in the June 2011 Quarter.
European Energy has more than 200 sq.km of prospective tenements in the Czech Republic which has a historical reliance on imported gas due to local consumption far exceeding local production.
The tenements are situated in the renowned Carpathian Hydrocarbon Province with close proximity to dense gas reticulation system and oil infrastructure that supports this heavily industrialized region of the Czech Republic.
The Czech Republic is acknowledged as one of the most stable and prosperous states in Central and Eastern Europe.
Managing Director Gerald Johnson said:"The company's assets are located in a recognised but under explored hydrocarbon province with good access for drill rigs and close to existing gas distribution pipelines.
"Following a successful IPO, we look forward to hitting the ground running and drill our first well in the June 2011 Quarter".
European Energy is well positioned to take advantage of the Czech Republic's growing energy market and predicted increase in gas prices.
