FATHER-and-son resources promoters John and Jeremy Towner will have to wait a little longer to cash in on their investment in New Guinea Energy after the $50 million float was withdrawn due to lack of interest.
The Sydney pair had planned to turn their $2000 investment into $20 million overnight by selling shares to the public at 50c rather than their entry price of 0.005c.
The recent Australian Stock Exchange listing attempt follows a failed push to list the company on London's Alternative Investment Market last year. New Guinea Energy had been scheduled to list on the ASX on May 30, but the date was postponed at least twice before the plan fell over altogether.
Although New Guinea Energy isn't listed, it is a public company with at least 270 investors. In a letter to shareholders posted on the company's website, John Towner said the board had "regretfully" decided to withdraw the listing since it couldn't meet the minimum subscription of $50 million.
New Guinea Energy has completed a seismic survey of some of its oil and gas prospects in Papua New Guinea with the $20 million it has already raised from investors. It hoped to raise $50 million to $60 million to give it enough money to drill at least five wells at targets with "estimated undiscovered petroleum initially in place" of up to 199 million barrels.
Mr Towner, who also heads copper and bauxite hopeful Ord River Resources, blamed the float's failure on the additional time needed by "a few large investors" to make a decision to invest or arrange necessary funds.
He added the company was considering "various options" to generate value from its large exploration acreage in PNG.
"The size of the exploration areas and the prospects and leads which have been identified by the company have already attracted the attention of several large international investors," Mr Towner said. "We will continue our pursuit of exploration for petroleum and to seek a public listing of the company at a later time."