Shares in Northcote Energy Ltd rose 27% on their first day of trading on AIM.
The US-focused oil and gas company raised £1m in a placing at 1p a share. Chief executive Randall J Connally converted $250,000 of loans into shares.
Northcote Energy Ltd reversed into ISDX-quoted Everest Energy Ltd. The oil and gas assets are in the Mississippi Lime formation in Oklahoma and Northcote’s share of production is 26.4 barrels of oil equivalent per day.
The cash raised will finance the fraccing of up to six wells in Osage County in 2013, drill two wells in the Layton Sand acreage and participate in 12 wells in Woods County. Net proven reserves are 661,000 barrels of oil and 1,678m cubic feet of gas. The net present value of these reserves is $33.8m.
At 1.27p a share, Northcote is valued at £10.9m.
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