America's Azalea Energy to raise $38m with London IPO
Louisiana-based oil and gas specialist Azalea Energy is to float on London’s AIM in a multi-million pound debut later this month.
The US company said the initial public offering, scheduled for October, would raise up to $38m before expenses, giving the business a market capitalisation of more than $100m.
Azalea acquires, develops and manages oil and gas-producing assets in proven legacy basins, with the aim of increasing reserves and production rates.
Its main assets are the Tuscaloosa Assets; the Austin Chalk Play near Austin, Texas; and the Louisiana Heritage Play across central and southern Louisiana.
It produces 2,200 barrels of oil equivalent per day, and in the six months to 30 June, group revenues were $9.6m. The operating loss was $4.7m.
Chairman and chief executive Luis Banos said: “Our technology has identified a multiplicity of high-impact, relatively low-risk prospects within our development assets. The use of the proceeds from a listing in London will allow us to significantly update the company’s production profile in a short space of time and build on the company’s strengths, particularly in the application of cutting edge technology to our assets.”
Azalea added that the company’s two biggest shareholders, Yorktown and Lexington, did not plan to sell their stakes, with Yorktown instead investing a further $6.5m as part of the placing.
Cantor Fitzgerald Europe will act as nominated advisor and broker to Azalea on the IPO.