UIL Energy (ASX:UIL) has brought its dominant acreage position near a recent major gas discovery in the underexplored Perth Basin to the ASX.
Adding to the attraction, the company has a well-recognised board and management team including former Bow Energy chief executive officer John De Stefani and Arrow Energy founder Stephen Bizzell.
Managing director De Stefani led Bow when it was acquired by Shell and PetroChina for A$535 million, or $1.52 per share, a 660% premium to the company’s IPO price.
Non-executive director Bizzell helped steer Arrow Energy’s growth from a junior explorer with a market cap of $10 million to a large integrated energy company with a market cap of $3.5 billion in less than 10 years.
Arrow was acquired by Shell for $4.70 per share, a 2,250% premium to the IPO price.
UIL Energy has secured close to 18,000 square kilometres of exploration acreage in Western Australia’s onshore Perth and Canning Basins.
These are prospective for both unconventional and conventional oil and gas plays.
Its permits are also close to existing infrastructure paving the way for early commercialisation and easier delivery of product to market.
Notably, the Perth Basin acreage is adjacent to AWE Limited’s (ASX:AWE) recent Senecio gas discovery, potentially the largest conventional find in Western Australia in over 50 years.
Highlighting this, Citi Research recently valued Perth Basin tenements at A$200 per acre, which is still substantially lower than the Cooper Basin multiples that have exceeded A$850 per acre.
In contrast, UIL will have an implied valuation of under A$30 per acre upon listing.
UIL had raised $4.2 million through the issue of 21 million shares priced at $0.20 per share under its IPO.
De Stefani, Bizzell and executive chairman Simon Hickey collectively hold 35% of the company.
The company has a market cap. of $21.6 million at listing.
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