Pentex eyes expansion as it comes to market

Pentex Oil, the production and exploration group, joins the stock market today via an introduction expected to value the company at about £20m.

Pentex also said it could not exclude tapping the market for $10m-$30m over the next year to further its plans to buy more oil- and gas-producing acreage, probably in the North Sea.

Henry Cameron, executive chairman, said the company had received some approaches about assets for sale, but that any deals would probably crystallise only later this year.

A principal reason for the listing, he said, was to provide Pentex, based in Aberdeen, with more financing options for expansion. Initially, there will be more than 20 million shares in issue. The biggest shareholder - Strand Associates, with 26 per cent- is understood to have paid £1 a share.

Following the listing the directors will retain their 25.4 per cent holding in the company, which operates 12 producing onshore fields in the UK and Italy. Pentex, which employs 70, is also a partner in eight producing fields onshore and offshore in the UK Continental Shelf. Ten of the UK onshore fields are in the East Midlands, where the company supplies natural gas to industrial consumers.

The company was formed in 1981 by a group of Scottish businessmen who wanted a slice of the expanding oil and gas industry. It ran short of cash in the mid-Eighties, when a new group of investors, led by Mr Cameron, took control.

The group produces 7,000 barrels of oil or oil equivalent daily; it has proven and probable reserves of 21 million barrels of oil and 9.5 billion standard cubic feet of gas.

Operating profits of £2.4m in 1991 compare with £2.5m in the first six months of 1994.

Mr Cameron said Pentex was predominantly production-based, avoiding the excessive risks of exploration failures. He added that potential investors could regard the group, which had core reserves lasting 20 years, as a play on the oil price, taking the view that the worst of the oil price fall was over.

peopleFrankie Boyle responds to referendum result in characteristically offensive style
Arts and Entertainment
Highs and lows of the cast's careers since 2004
New Articles
i100... with this review
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam