Exxon mulls float of gas venture
The US petroleum company has formed an early-stage joint venture with unlisted company Ignite Energy in Victoria.
Ignite boss Len Humphreys said the possibility of floating the venture on the ASX had been discussed. "We are a publicly unlisted company, so that means we have quite a significant base of shareholders, and like all shareholders their interest is in their return on their investment," he said.
Exxon paid $12.5 million last year for a 10 per cent stake in the joint venture, and has the right to increase its ownership to 51 per cent if it spends $50 million on exploring the permit, in the Gippsland region east of Melbourne.
Aside from the joint venture, Ignite has a coal play and a biofuels play, and Mr Humphreys said all three could be floated.
Talk of an IPO for the onshore gas play comes after weeks of pressure on governments in Victoria and NSW to embrace the sort of unconventional gas boom that has occurred in Queensland.
The term "unconventional" oil and gas is often used as a proxy for shale fracking but the term can also refer to other types of gas extraction, such as coal seam gas, tight gas and so on.
Frequently Asked Questions about this Article…
Exxon Mobil has formed an early-stage joint venture with Ignite Energy to explore unconventional gas opportunities in Victoria. This venture could potentially be floated on the ASX, allowing investors to participate in the project.
Exxon Mobil has formed an early-stage joint venture with Ignite Energy to explore unconventional gas opportunities in Victoria. This venture could potentially be floated on the ASX, allowing investors to participate in the project.
Floating the gas venture on the ASX is being considered to provide shareholders with a return on their investment. It would also allow the venture to raise capital from the public market to fund further exploration and development.
The possibility of floating the gas venture on the ASX has been discussed to provide shareholders with a return on their investment. This move could also help raise capital for further exploration and development.
Exxon Mobil has invested $12.5 million for a 10% stake in the joint venture with Ignite Energy. They also have the option to increase their ownership to 51% by spending an additional $50 million on exploration.
Exxon Mobil paid $12.5 million for a 10% stake in the joint venture with Ignite Energy. They have the option to increase their ownership to 51% by spending $50 million on exploration in the Gippsland region.
In addition to the joint venture with Exxon, Ignite Energy has a coal play and a biofuels play. All three projects have the potential to be floated on the ASX.
In addition to the joint venture with Exxon Mobil, Ignite Energy has a coal play and a biofuels play. All three projects have the potential to be floated on the ASX.
In this context, 'unconventional gas' refers to types of gas extraction that are not traditional, such as shale fracking, coal seam gas, and tight gas. These methods are being explored in the joint venture between Exxon and Ignite Energy.
In this context, 'unconventional gas' refers to types of gas extraction that are not traditional, such as shale fracking, coal seam gas, and tight gas. These methods are being explored in the joint venture between Exxon Mobil and Ignite Energy.
The Gippsland region, located east of Melbourne, is significant for this gas venture as it is the area where Exxon Mobil and Ignite Energy are focusing their exploration efforts for unconventional gas.
The Gippsland region, located east of Melbourne, is significant for this gas venture as it is the area where Exxon Mobil and Ignite Energy are focusing their exploration efforts for unconventional gas.
There is pressure on the Victorian and NSW governments to embrace unconventional gas development due to the success of similar projects in Queensland, which have contributed to an energy boom in the region.
There is pressure on the Victorian and NSW governments to embrace unconventional gas development, similar to the boom experienced in Queensland. This could open up new opportunities for energy production and economic growth.
If the gas venture is floated on the ASX, everyday investors could benefit from potential returns on investment as the project develops. It also provides an opportunity to invest in the growing unconventional gas sector in Australia.
An IPO for the onshore gas play could provide capital for further exploration and development, offer investors a chance to participate in the venture, and potentially lead to significant returns if the project is successful.
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