Dual-listed L&M Energy has announced an offer to shareholders which could raise up to $2.85 million.
In July the company completed a $8.5 million capital-raising from institutional and sophisticated investors.
The subsequent offer to existing shareholders was mooted by LME chairman Geoff Loudon several weeks ago, and was announced yesterday.
The shares are on offer at NZ9c to a maximum $15,000 worth per shareholder, which would amount to $2.85 million if all 1900 shareholders took up the maximum offer, brokers at Craigs Investment Partners said.
The $8.5 million raised earlier will be used to boost coal seam gas exploration in the South, and LME plans to have a $2 million pilot production project operational in Ohai by September to measure gas flows.
After a cashless merger in February with private sister company Coal Seam Gas, LME now has 12 permits covering almost 13,000sq km for coal bed methane gas exploration, in Otago, Southland, the West Coast, Taranaki and the Waikato.
Its Ohai and Waiau permits in Southland, 70km northwest of Invercargill, are for the most promising areas of exploration and are estimated to contain 173 petajoules of energy.
