Indus Gas Limited announced its admission to AIM following the successful placing of 15,243,922 ordinary shares at 164p by Arden Partners plc raising GBP 25m. The notional market capitalization of the Company on admission will be GBP 300m.
The Company owns, through its wholly owned subsidiaries, a 90% participating interest in a petroleum concession located in a 4,026 km2 on-shore area in mid Indus Basin, Rajasthan, India, known as Block RJ-ON/6. Two gas discoveries have so far been made at the Block.
"The successful admission of Indus to the AIM market represents a significant step forward for the Company," said Marc Holtzman, Non-Executive Chairman. "Indus has already made significant progress with one commercial gas discovery and a second discovery that will be tested later this year. First gas production is expected next year and a term sheet for sale of up to 33 million cubic feet of gas is already in place. The placing was extremely well supported by UK institutions and we are pleased to be able to welcome a range of new and well regarded shareholders."
The Directors are seeking admission to AIM in order to raise funds to part finance the exploration, appraisal and development of its hydrocarbon assets, including appraising and developing the SGL and SSF discoveries, installing gas processing facilities, acquiring additional 3D seismic and drilling of additional exploratory wells to the extent permitted under the PSC and available funds. The placing proceeds will further provide the Group with additional working capital to execute its business strategy. It is anticipated that admission will raise the Company's profile, give it access to capital markets and help diversify its shareholder base.
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