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
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.
IHT receipts approach record year – will the tax be reformed?
News The Treasury is set to take £7.6 billion from inheritance tax payments this financial year amid rumours of reform in the Spring Budget
By Marc Shoffman Published
Stocks and shares ISAs beat cash ISAs despite rising interest rates
Exclusive analysis for MoneyWeek shows that the stock market beat cash ISAs last year - and when inflation is factored in, cash savers actually made a loss. We run through the figures.
By Ruth Emery Published