Houston-based Resaca Exploitation Inc. has closed an IPO of 33.3 million company shares and 8.7 million shares on behalf of selling shareholders for a total 41 million shares at US$2.58 each for a total raise of US$105.8 million on the London Aim Exchange as RSOX. Seymour Pierce and RBC Capital Markets were joint brokers.

Resaca has oil and gas fields on 15,000 gross acres (14,000 net) in the Permian Basin of West Texas and southeastern New Mexico. The primary fields include a total 171 producing wells, 59 injection wells and 25 shut-in wells in the Cooper Jal unit in Lea County, New Mexico; the Penwell complex in Ector and Crane counties, Texas; and the Grand Clearfork unit in Pecos County, Texas.

Average net production during 2007 was approximately 760 barrels of oil equivalent per day. Primary and secondary techniques are projected to increase estimated net production to more than 3,000 barrels of oil and 4 million cubic feet of gas per day by the end of 2011. Proved and probable reserves as of Jan. 1 were 28.1 million barrels of oil and 19.3 billion cubic feet of gas.

James Perry Bryan Jr. is chairman. He is also chief executive of a privately owned, Houston-based Torch Energy Advisors Inc. and was president, CEO and chairman of various E&Ps, including Bellwether Exploration Co., Nuevo Energy Co. and Gulf Canada Resources Ltd. John James Lendrum III is CEO. He is also president and chief operating officer of Torch Energy Advisors and was president of energy-capital provider Rockport Resources Capital Corp. Dennis Hammond is president and COO. He was vice president of Nuevo Energy and co-founded Everlast Energy.

Resaca plans to use the proceeds to fund E&P in West Texas and southeastern New Mexico, acquire additional interests in the properties and adjacent areas and examine other potential U.S. opportunities. The company will not receive any proceeds from the shares sold by selling shareholders.

Lendrum says, “We are delighted to have commenced dealings on the AIM market of the London Stock Exchange against what is a challenging global economic backdrop. The response we have received from investors to our oversubscribed Placing has been very encouraging. Resaca is committed to the use of tertiary recovery methods such as the injection of sequestered CO2 into oil reserves. These methods will not only enable the company to double or triple production rates, but will also benefit the environment by reducing emissions into the atmosphere.”