Saturday 22 September 2018

T5 Oil & Gas will seek more than €30m in flotation

Energy explorer is targeting a spring IPO in both London and Dublin

T5 executive chairman Pat Plunkett
T5 executive chairman Pat Plunkett
Gavin McLoughlin

Gavin McLoughlin

T5 Oil & Gas will look to raise more than €30m in its upcoming stock market flotation. The company is planning to list in Dublin and London this spring, after completing a deal to take a stake in an asset in Gabon in West Africa.

The Sunday Independent understands that the company wrote to shareholders in November, saying that it wanted to invest more than $30m (€24.17m) in the asset.

The funds are to be used for developing the asset and expanding its existing levels of oil production.

T5 is run by executive chairman Pat Plunkett, who is also chairman at Providence Resources. It originally wanted to float last April but that plan was delayed. The company declined to comment on its latest listing plans.

The Gabon deal gave T5 a platform on which to raise money on the stock market as it seeks to achieve its ambition of "building a publicly listed billion-dollar Africa and Middle East E&P (exploration and production) company".

It has also been active in Senegal. T5 was set up by a group of Tullow Oil veterans. Executive chairman Plunkett was the chairman of Tullow Oil from 2000 until 2011. Other ex-Tullow figures involved in the company include exploration director Gerry Sheehan, who was previously an international exploration manager at Tullow.

Matthew O'Donoghue, a former director of international operations at Tullow, is on T5's board, as is the former Tullow managing director for Africa, Andrew Windham.

Irish companies in the exploration and production sector have been experiencing an uplift in fortunes as the oil price has risen in recent months.

Providence Resources, run by Tony O'Reilly Jnr, has entered exclusive discussions with a potential farm-out partner for its flagship asset, the Barryroe field off the Cork coast.

Meanwhile, United Oil & Gas, run by Providence and Tullow veteran Brian Larkin, aims to be producing gas next year after positive results from a flow test in Italy last week.

Oil hit fresh three-year highs during the week as weakness in the dollar continued to underpin prices.

As oil is traded in dollars, swings in the currency can impact oil demand as they affect the price of fuel purchases for countries using other currencies.

"This inverse dollar relationship with crude can be nebulous at times, but we have reached a point where the impact will be felt in the form of higher crude prices," said John Kilduff, partner at Again Capital in New York.

On the supply side, US oil production is expected to hit 10 million barrels per day (bpd) soon, putting it on a par with the top exporter, Saudi Arabia.

US oil drillers added 12 rigs this week, the biggest weekly increase since March, energy services firm Baker Hughes said on Friday. (Additional reporting, Reuters)

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