Earlier this week EnergyReview.Net said rumours had resurfaced that Indo-Pacific expected to soon list on the main board of the stock exchange (NZX), with an initial public offering (IPO).
Today the company said it would be offering 4 million shares at an issue price of $NZ2.00 per share. In addition, for every two shares being offered, investors would receive one "warrant", exercisable at a price of $NZ2.10 at any time up to November 30, 2004.
Chief executive Dave Bennett said the company expected to release the issue prospectus on Monday. The capital raised would "progress and commercialise" Indo-Pacific's exploration and development programs, primarily in New Zealand.
Bennett, who is in Taranaki talking to energy journalists, also outlined plans to possibly drill three deep-gas wells within the next year or so - targeting prospects so good they could perhaps solve New Zealand's critical gas supply situation.
The onshore Cardiff, Akama and offshore Orca and Humpback structures had the potential to contain several tcf of gas, Bennett said.
The Cardiff field in licence PEP 38738 had, according to a Shell report on the Cardiff-1 well of the early 1990s, had over 850m of stacked hydrocarbon-bearing zones, mainly within the Eocene-aged Kapuni group.
The 27sqkm Cardiff field, which also included the Stratford South-1 well drilled last decade, had the potential to be as big as the nearby Kapuni field, which also produces from the Kapuni formation. Shell now estimated ultimate recoverable gas reserves at Kapuni could be as much as 1.25 tcf.
Bennett said, given satisfactory farmout arrangements - and Indo-Pacific had already had enquiries from two "new to NZ" companies, one an Iranian explorer - Cardiff could be drilled in late 2004.
He said the Akama play, in PEP 38753, had more seismic work to be done to confirm it was a drillable prospect, but "Akama has the potential to be bigger than anything else".
Bennett also said recent 2D seismic over the offshore Taranaki licence PEP 38480 had shown the Orca prospect to be "bigger and better" than before. Orca looked very similar to the nearby Pohokura field, which could contain 1 tcf of Kapuni-level gas.
Again, subject to suitable farm-in partners, Indo could utilise the Ocean Bounty, after it had drilled up to three wells for New Zealand Oil ad Gas and its PEP 38460 partners, to drill Orca and the Humpback prospect, a separate target on top of Orca. The Bounty is likely to arrive in New Zealand waters from Australia next March.
As well, Bennett said he had talked to all major gas users, including methanol manufacturer Methanex, regarding "pre purchase" agreements similar to the one Indo-Pacific concluded with NGC earlier this year, whereby users can, for a price, have first right of negotiation regarding new gas finds.
Bennett added that Indo-Pacific had the best acreage in the onshore Taranaki "discovery fairway".
Commentators, however, hope he doesn't find himself in more litigation "bunkers", unable to get out without incurring penalties, as happened earlier this year when the High Court ordered Indo-Pacific be removed as operator of the onshore Taranaki Goldie field. Indo-Pacific subsequently sold its Goldie and Ngatoro interests to the current Goldie operator, Greymouth Petroleum.
Indo-Pacific also holds acreage on the East Cape and Canterbury, as well as holding exploration acreage (AC/P 19, 26 and 31) in the offshore Vulcan Trough, Western Australia, and the Papuan Basin of PNG (PPL 228 and 235, and PRL 4 and5).
Investment banker and NZX stockbroking firm McDouall Stuart Securities is leading the $NZ8 million share issue, which opens Monday and closes on December 12.
Indo-Pacific has applied to the NZX for permission to list the shares and the warrants as an Overseas Listed Issuer. Also, the New Zealand listing is conditional on the company being accepted for listing on the "home" Toronto-headquartered TSX Venture Exchange (TSXV), which is expected to be completed before the New Zealand offer closes.
