iNVEZZ.com, Wednesday, January 22: UK oil explorer Hurricane Energy Plc today confirmed plans to float on London’s junior AIM market in February in an initial public offering (IPO).
Hurricane Energy, which focuses on oil reserves held in reservoirs beneath the North Sea, has already secured investment by oil major BP Plc (LON:BP). BP’s share price has added just under 0.2 percent in London trading today.
BP-backed Hurricane unveils listing plans
Surrey-based Hurricane announced today in a statement that it would seek admission to the London Stock Exchange’s AIM market. The Hurricane Energy IPO, scheduled for February 4, is expected to value the company at around £272 million.
The company, whose shares will be trading under the ticker symbol HUR, said it would raise around £18 million from investors upon listing and another £31.4 million through the conversion of loan notes and a warrant at the time of the IPO.
Hurricane Energy said that oil major BP was amongst the investors in the company, having contributed to a funding round last March.
“We are delighted to be proceeding with an IPO of Hurricane in what is a difficult market for new issues in our sector,” Hurricane Energy’s chief executive Dr Robert Trice said in the statement, adding that the company was “pleased to have seen further support during the listing process from existing shareholders”.
Fractured basement reservoirs
The company’s board is chaired by John Hogan, former chief operating officer of Lasmo, with non-executive directors including former BP chief geologist David Jenkins.
Hurricane Energy also announced today that it had entered into an agreement with Transocean Drilling UK Limited and Talisman Sinopec Energy UK Limited for the provision of a drilling rig for Hurricane’s Lancaster basement oil discovery which is estimated to contain contingent resources of 207 million barrels of oil equivalent. The rig is expected to be available to start drilling in the second quarter of 2014.
In addition to Hurricane Energy, companies likely to seek AIM-listing this year include Manx Telecom, the leading telecommunications provider on the Isle of Man. (Manx Telecom IPO: Isle of Man telecom to seek AIM listing: FT) The IPO is tipped to raise more than £150 million, depending on how many shares the company’s owners decide to sell to the public.
Casual fashion retailer Fat Face is expected to make its debut on London’s main market, with the IPO likely to take place within months. (Fat Face IPO: Fashion retailer dresses up for London flotation)
As of 14:20 UTC, buy BP shares at 492.60p.
As of 14:20 UTC, sell BP shares at 492.45p.
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