While its initial IPO seeking $15 million was largely ignored by the market, Global Petroleum has scaled back its capital requirements to a minimum of $2 million by paying the asset vendors in stock only, after having dropped the cash component of the offer.
The company only dropped one of the assets being offered in the earlier prospectus, that being the Jordanian block. Given the acrage abuts the Israeli border near the troubled Golan Heights area, Global Managing Director, John Armstrong said dropping the block had helped make the offer more attractive to investors.
The company release a supplementary prospectus today outlining the offer, which targets an October ASX listing and fourth quarter start to exploration.
"We have opted for a minimum … of $2 million with an allowance for oversubscriptions of $1 million, based on the issue of 8 million shares at $0.25 cents each. The Offer's closing date is extended to 30 September," Dr Armstrong said.
Global Petroleum is listing on assets in Kenya, Montenegro, the Falkland Islands and Fiji.
Dr Armstrong said work since May on the Kenyan properties continued to indicate significant upside in numerous leads and "prospects". He said the company planned to commence its maiden exploration program by December, undertaking seismic work in Montenegro with a view to drilling that area in the second half of 2003.
