Mercom Oil Sands, a company formed to acquire and develop oil sand properties in Canada, made its dbut on AIM on Tuesday, May 29th.
The company came to London's junior market after raising £3.35m through a placing of 33.5m new shares at 10p each with institutional and other investors.
Based on the placing price, Mercom has a market capitalisation of £31.7m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The net proceeds of the placing will be used to fund Mercom's proposed drilling programme and due diligence on other oil sands properties in the region which it is interested in acquiring.
Thus far, the group has a 50% ownership and working interest in four oil sand leases over the Chard field in Alberta, Canada. The interest cost C$700,000, and the company has agreed to fund a further C$2.5m of exploration and development expenditure on these leases.
The company plans to drill eight wells over the next two years in order to form a better understanding of the contingent resources. The company's strategy in the longer term is to take the Chard Oil Sand Leases into production.
Libertas is the nominated adviser (nomad) and broker to the company.
JH
-
RICS: Housing market continues to strengthen but 2025 could be challengingThe latest survey by the Royal Institution of Chartered Surveyors reports a resilient UK housing market, but warns of headwinds next year
-
Bitcoin price one of the most-asked questions on Alexa - here's how to buy the cryptocurrencyAccording to figures from Amazon, which cover September 2023 to November 2024, pop star Taylor Swift and Bitcoin were named among the most popular Alexa queries of 2024
