Coretrack has closed its initial public offering, which was oversubscribed, and is now listed under the code 'CKK'.

The Perth-based company had sought $2.2 million with a minimum subscription of $1.8 million.

But Coretrack directors said today that the capital raising venture had topped $3.1 million, including oversubscriptions accepted under the prospectus.

The company has 47.75 million 20c shares on issue, so that it was capitalised at listing at $9.35 million.

Coretrack owns the intellectual proprietary to new, locally designed technology known as core barrel capacity gauge (CBCG).

The company claims that the technology is set to globally challenge the oil and gas sector’s traditional core drilling techniques as it enhances the accuracy of taking core samples during drilling and development of oil and gas wells.

In addition to providing definitive and real time information in the core sample process, CBCG also targets a significant lowering of costs involved in the crucial gauging of relevant geological data, according to Coretrack.

“The company holds both the Australian and international patent applications for the technology, which takes the guesswork out of core samples,” Coretrack chairman Robert Collins said today.

“The multi-billion dollar a year global oil and gas sector is watching the development of our drill technology extremely closely. Once we have successfully completed development of this cutting-edge technology, the industry as we know it today is in for a major shake-up,” he said.

Collins said the strong interest in the IPO had reflected the technology’s international potential and appeal.

Coretrack technical consultant Bill Connell said the core barrel capacity gauge aimed to provide definitive and real time information concerning the rate of core sample acquisition, rather than implying or inferring its status, which is currently the case.

“This real-time data offers the potential to realise significant savings during the core process by increasing efficiency and reliability of the coring process,” he said.

More than $650 million per annum is outlaid by the global oil and gas sector to obtain core samples in order to carry out reserve and production estimates.

Coretrack would specifically target the coring services sector of the oil and gas sector, both onshore and offshore, domestically and internationally, according to Connell.

“As coring is an expensive operation, Coretrack envisages the core barrel capacity gauge will become a unique and essential tool in the world’s ongoing quest to discover these valuable resources,” he said.