European Shale Leader Raises Funds
Shale gas explorer 3Legs Resources had a successful debut on London’s alternative investment market (AIM) on Thursday.
3Legs completed an initial public offering raising approximately £62.5m in new shares in order to fund further development of its European shale gas projects in Poland. The company also holds onshore exploration licences in Baden-Wurttemberg in south-west Germany, with two further licences under application in France.
The listing price at 190p gave the company a market capitalization of £161.1 million ($264 million).
"We have a significant first mover position with over 1,000,000 gross acres in one of the most sought-after shale basins within the European Union," Chief Executive Peter Clutterbuck said in a statement, referring to the firm's Baltic Basin in Northern Poland.
3Legs was established in early 2007 to focus on the exploration and development of unconventional oil and gas resources. In August 2009, Lane Energy Poland, a subsidiary of 3Legs, and ConocoPhillips the third largest oil company in the U.S. by market value, entered into an agreement under which the parties agreed to jointly evaluate the potential of Lane ’s six Baltic Basin licences.
During the course of the last six months of 2010 and the first quarter of 2011, the partnership successfully drilled, cored and carried out testing on two vertical wells, Lebien LE-1 and Lebork S-1, targeted at the Silurian and Ordovician shales. Further drilling activity scheduled to commence in early Q2.
Conoco invested $45 million in the project and in 2 months will have the option to acquire 70 percent of the joint venture's assets, according to Clutterbuck. The company is looking for opportunities in other former communist countries in the European Union, he said.
New investors were likely buoyed by news that Japanese trading giant Mitsui had taken a stake in Polish shales, joining a group that includes Exxon Mobil Corp., Eni SpA, Chevron Corp., Marathon Oil and Total SA.
3Legs shares closed up on its first day of conditional trading at 203.00p. Regular trading starts on June 14th,
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