Under its oversubscribed initial public offering, the Sydney-based company issued 10 million shares at 20c each, with 5 million attaching options, to raise $2 million.

Trading under the ticker "KTO", the company started trading at 11am (EST) this morning at 23c - a 3c premium.

K2 Energy started operating in the US in February, where its strategy is to farm-in to relatively small-scale, onshore, proven hydrocarbon-producing areas operated by experienced local players. It is considering expanding offshore in the future.

To date, the company has invested in several projects in Texas, Michigan, Louisiana, Illinois and Alabama. It has also completed a gas discovery project in Hidalgo County, Texas and a further six wells have been firmed-up for drilling over the next three to six months.

“K2 continues to assess and evaluate many new drilling opportunities and intends to participate in approximately 15 wells per year,” the company said in its prospectus.

Following listing, the company has a market capitalisation of $16.2 million and an additional 26 million shares, with the same number of attaching options, in escrow for the next two years.