An independent oil and gas explorer, Energean, today announces its intention to proceed with an initial public offering (IPO). Energean intends to raise around $500 million in London Stock Exchange’s main marketmarket in March.
Funds from the listing would flow mostly into Israeli projects, with $10 million for the founders and some earmarked for fees and other corporate purposes. Energea also says it will consider a secondary listing in Tel Aviv (TASE).
The 11-year-old eastern Mediterranean specialist said in a statement on Monday, that its spacial interest to be in Greece, the Adriatic, North Africa and Montenegro.
However, it notes that the most significant undeveloped assets lie in gasfields off Israel, where the government is ready to go forward with development.
CEO Mathios Rigas said: “Over the past few years, Energean has built a strong production, development and exploration portfolio in the Eastern Mediterranean to position itself as one of the leading independent oil and gas companies in the region. The current, advanced plans for the development of the Karish and Tanin fields, offshore Israel, together with the significant development programme for the Prinos licences in Greece, have given us considerable momentum in our progress towards achieving this objective. The Offer will provide us with a platform to secure this next phase of growth for our pipeline of attractive exploration projects.”
According to Financial Times, the prospect looks strategically attractive when North Sea reserves are in decline and the region is fretting about its dependence on Russian supplies.
Still, development in the eastern Mediterranean resources is too risky because of the cocktail of political risks and rivalries involving the countries concerned.
FT mentioned the global energy markets are awash with cheap gas from Russia, the US and elsewhere.