1947 Oil & Gas is to join AIM this month, raising £50 million to fund the purchase of a Houston-based producer with interests in eleven shallow-water fields in the Gulf of Mexico.
The newly incorporated company will issue 500 million shares at 10p, giving it a market capitalisation of £65 million on admission.
Dealings are expected to begin in August under the ticker 1947. The fundraising follows an oversubscribed pre-listing round that raised roughly £7.2 million.
Proceeds will principally cover the purchase of Renaissance Offshore, a privately held oil and gas production company, with the balance going to working capital and listing costs.
The acquisition completes on admission and gives the company an immediate producing base.
Netherland Sewell and Associates has certified net proven reserves of 15 million barrels of oil equivalent and proven plus probable reserves of 19.7 million barrels.
The proven and probable figure carries a PV10 valuation, a standard industry measure discounting future cash flows at 10%, of $346 million before federal income taxes and after estimated abandonment costs, based on forward prices as at 15 May.
That compares with headline consideration of $65 million.
The board is led by Tim Duncan, who founded Talos Energy and built it into the largest independent producer in the Gulf, reaching a peak market value of $2.6 billion.
Also involved are Jeff Currie, who spent 27 years as global head of commodities research at Goldman Sachs and later served as chief strategy officer at Carlyle, and Ivan Murphy, a founder of Cove Energy, which was sold for $1.5 billion.
The directors argue that conventional shallow-water assets are systematically undervalued by institutional investors despite generating strong free cash flow, and estimate that $20 billion or more of stranded reserves remain accessible at low cost through existing infrastructure.
They intend to pursue further acquisitions on that basis. The company plans a progressive dividend policy, with a first interim payment following results for the half year to 30 June 2027.
Duncan said the Renaissance assets provided immediate oil-weighted cash flows and a foundation from which to scale production.
Murphy said access to capital through AIM would allow the company to pursue a pipeline of producing shallow-water assets.
