17 July 2008
The London Stock Exchange is delighted to welcome Resaca Exploitation Inc. to AIM.
Resaca is an independent oil and gas exploitation company based in Houston, US. Its activities are currently focused on the exploitation of its portfolio of long-life properties located in the Permian Basin of West Texas and Southeast New Mexico which have high levels of original oil in place, utilising a variety of primary, secondary and tertiary recovery techniques.
The Company intends to acquire and exploit oil reserves through the implementation of these techniques and procedures, with the objective of doubling or tripling recovery rates from the oil fields that it acquires.
Resaca’s future plans include the injection of sequestered CO2 into oil reserves, which will both benefit the environment and supply energy to assist with shortages in fuel supplies.
Resaca’s joint brokers, Seymour Pierce and RBC Capital Markets have successfully raised £53.3 million through an institutional placing of primary Common Shares, comprised £42.0 million for the Company and £11.3 million for existing shareholders. The fundraising values the Company at £119.9 million.
Commenting on the Placing, Jay Lendrum, Chief Executive Officer, said:
“We are delighted to be joining AIM and are very encouraged by the strong support that Resaca has received from institutional investors.”
“The flotation and fund raising will allow the Company to pursue its planned exploitation programme in West Texas and Southeast New Mexico and to seek opportunities to expand its portfolio of properties in the Permian Basin and other, in the longer term, basins within and outside the U.S.”