LONDON (Alliance News) - Highlands Natural Resources PLC, an investment company set up to buy oil and gas assets from distressed companies and take advantage of a potential rebound in oil prices, saw its shares rise in early dealings after it listed on the London Stock Exchange's main market Wednesday.
The company has been founded by Chief Executive Robert Price, former president of Palomar Natural Resources and a former advisory board member of San Leon Energy. He's invested over GBP600,000 of his own money in the business, which it said "aligned him significantly with other shareholders".
Its main strategy is to buy oil and gas assets with stable income at current oil prices, and it plans to build a portfolio weighted 80% towards producing assets and 20% exploration assets. It said its board and advisory team are already evaluating a range of acquisition opportunities, having access to "quality deal flow from banks and distressed companies".
It added that target projects could include a "value enhancement component" such as helium and/or iodine.
The potential targets are in the US, EU, East Asia and Southeast and West Africa.
"Many debt-ridden companies are becoming increasingly desperate. Our Main Market listing is focussed on capitalising on this by building a de-risked, revenue generative oil and gas portfolio which also benefits from exposure to exciting exploration upside potential," Price said in a statement.
"We believe that our 80:20 model is responsive to current investment criteria and will provide investors with exposure to oil and gas assets with stable income at current oil prices, thereby positioning us strongly for a price rebound in the future," he added.
The Brent oil price is currently trading around USD55 a barrel, having been above USD115 a barrel last June.
Price is joined on the board by Finance Director Jon Melvyn Davies, a former finance director of Silence Therapeutics PLC. The advisory board comparises Randy Natvig, most recently with Laramie Energy; Jack Steinhauser, who founded Wind River Energy Corp and is the current owner and president of sell-side advisory firm Hunter Stuart Energy Advisors Inc; Mike Mullen, the president and founder of Stimulation Petrophysics Consulting, and Paul Mendell, the founder of Iofina PLC who's currently an oil and gas producer based in Castle Rock, Colorado.
The company listed 20 million shares of 5 pence each on the LSE, giving it an initial market capitalisation of GBP1 million.
Its shares were trading at 6.5p Wednesday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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