Perth-based junior oil and gas explorer and producer Burleson Energy Ltd has a lodged a prospectus for its $4 million initial public offering to fund its share of a proposed two well drilling program in Texas and the acquisition of additional leases.
The offer will also be used to fund its pursuit of other oil and gas opportunities, meet the expenses of the offer and provide working capital.
The offer is for 20 million shares in Burleson at a price of 20 cents per share.
The company is chaired by lawyer John McAlwey and its chief executive is Michael Sandy, who helped establish Novus Petroleum.
Burleson has entered into an agreement to acquire a 40 per cent working interest in a suite of oil and gas leases in Burleson County, onshore Texas, United States of America.
The leases lie within the extensive Austin Chalk and Georgetown oil, gas and condensate fields referred to collectively as the "Giddings Field". The Austin Chalk and Georgetown reservoirs in the region of Burleson Energy's leases contain predominantly gas and condensate rather than oil.
The company's partner and the operator, AKG Energy, has developed a geological model which targets 'sweet spots' in the properties.
Burelson is proposed to use the funds raised for the drilling of two "dual-lateral" horizontal wells (with a horizontal section drilled into each of the two main reservoirs) in the properties most attractive locations.
The drilling is expected to commence in the third quarter 2006 and is to be completed by the end of 2006.
In addition, existing funds and those raised in the prospectus will be used to fund the acquisition of additional Burleson County leases and work programs.
The prospectus was lodged with ASIC on the 10th April. The applications open on the 18th April and close 12th May 2006. Burleson will begin trading on the ASX on 22nd May 2006.
