Jump to content

L & M Petroleum - New ASX listing (LMP)

Recommended Posts

New oil explorer L & M Petroleum listed today on the ASX. i took stock in the iPO...was hoping for a nice stag for half my shares, but the timing of the listing was the worst possible given the oil price drop overnight.


However, this presents a cheap buying opportunity for those who don't mind a 'no guts. no glory' type of punt.


L & M Petroleum is essentially a spin off from the Lime and Marble group which has been operating in NZ for a very long time. They have divested their oil exploration assets in NZ into LMP.


LMP will be throwing a lot of cash at exploration over a two year period, but some wells are funded by NZ partners.


The basin actually broke off from the Taranaki basin (in a previous life) and so has excellent potential for large scale oil finds, but which of course are as rare as hens teeth.


The chairman, Geoff loudon, was actually the founder of Lihir Gold so has an excellent track record, and has thrown quite a bit of his own dosh behind the float. Other directors/management also apear to be of high quality.


Worth a small punt for potential large gains imo.



Link to comment
Share on other sites

Could be interesting, B.


what's the MarketCap?

and what % of the shares do management own?

Link to comment
Share on other sites

Hi Dr


Total shares on issue are 175 million, so that gives it a market cap, at 21c, of around $36.75 million (Australian). Thre are also 30 mill options, though only 10 mill or so would be considered in the money so add 2 mil to that market cap.


Note after three months, a 'bonus loyalty option' will be issued to every shareholder on the register at that time, on the basis of 1 option for every 2 shares, and an ex price of 25c. If SP is over that price by then, that would effectively add another 87M shares t be considered.


Though this sounds like an 'expensive' amount for a newly listed oil explorer, needs to be taken into context of the quality of assets. This taken from Govt website regarding their key area:


"Geology: Up to 9 km of Cretaceous to Quaternary fill in several basins with a total area of about 20,000 sq km. Key stratigraphic units similar to Taranaki Basin."




"Prospects: Gas seeps, degraded oil outcrop onshore. Numerous structural and stratigraphic leads."


That link is:




The largest shareholder is a company called Weaver holdings, which holds around 43% of the ordinary shares in the company...it also owns 8 million of the options. The company has three equal shareholders of which one Geoff Loudon, the chairman, so he effectively owns around 12% of the company through this holding alone, before considering the options. Not sure who the other 2 shareholders in Weaver are. Loudon appears to be the only director with shares in the company.


In summary, directors holdings as per prospectus are:


Geoff Loudon: 25M shares, 3M options

John Bay: 4.4M options

Greg Hogan: 5.8M options


3 other diretors have 1M options each





Link to comment
Share on other sites


This topic is now archived and is closed to further replies.

  • Create New...