Once listed, the company expects to have a market capitalisation of $798-979 million – similar to Beach Petroleum and well in front of companies such as Roc Oil and Anzon Australia, making it one of the largest floats of the year.
Coogee, which is offering ordinary shares at $1.90-2.33 each, plans to use the IPO funds, together with proposed debt financing, to primarily develop its key asset, the 100%-owned Montara project, which comprises the Montara, Skua and Swift/Swallow oil fields, and contains a potential 36.92 million barrels (MMbbl) of oil reserves.
First production from Montara is targeted for the third quarter of 2008.
The company also has a 70.94% stake in producing oil fields at Jabiru and Challis, and is planning to spend $40 million to drill three new appraisal wells next year and in 2008.
Coogee’s exploration portfolio comprises 21.2MMbbl and 8.8MMbbl of GCA-audited oil prospects and leads, respectively, as well as additional company-identified leads, all within tie-back distance to the Jabiru and Montara fields.
A feasibility study is also underway into developing a floating gas-to-liquids methanol production facility to potentially commercialise its 834.4 billion cubic feet of contingent gas resources and other third party offshore gas assets.
Coogee intends to undertake a front-end engineering and design study for this project in 2007-2008 to refine the technology, with the aim of starting production in 2012. It said this project has the potential to generate significant long-term cash flow from the sale of methanol into the chemicals and alternative fuels markets.
Chairman Gordon Martin said an ASX listing was the next logical step in his company’s growth strategy.
“We have significant oil reserves; a well-balanced and multi-disciplined board including former Woodside CEO John Akehurst as deputy chairman; and an experienced and highly skilled management team that oversees the day-to-day operations,” he said.
Chief executive Peter Hood added that Coogee had secured the “West Atlas” jack-up drill rig from September 2007 to undertake development well drilling, as well as an agreement to convert a 900,000bbl storage floating production, storage and offloading vessel.