Geo Energy officially lists shares at SGX

By Edgar Subroto

SGX-listed coal mining firm Geo Energy Resources Ltd's share price surged as much as 51 percent above the initial public offering price in its trading debut on the Singapore Exchange on Friday.

Geo Energy shares rose as high as S$0.49 on volume of nearly 117 million shares. The company sold 289.3 million shares at S$0.325 each and its IPO was 2.9 times subscribed.

Geo Energy has a coal producing mine unit PT Bumi Enggang Khatulistiwa (BEK) in West Kutai regency, East Kalimantan. The company currently produces between 50,000 - 100,000 tons per month of low CV coal.

BEK has started its coal production since February this year with CV 3,500 kcal/kg (GAR), sulphur content of 0.5 percent, ash of 8 percent and TM of around 40 percent.

BEK's concession covers 4,570 hectares are having resources of about 20 million tons. Its first shipment was made in the mid 2012.

The company is targeting to produce 2.3 million tons for next year, triple from this year's target of 700,000 tons.

Geo Energy has also entered into mine services contract with a coal mine owner, PT Borneo Mitra Sejahtera (BMS) at Loa Kulu, Kutai Kartanegara Regency, East Kalimantan.

The company said that the services deal would be limited to overburden removal and coal hauling activities, in compliance with the 2009 Mining Law. It said that BMS will undertake the coal excavation and coal sale activities.

Operations in relation to the contract commenced in September 2012 and shall continue throughout the economic life of the Borneo Mine, it said.

According to Petromindo.Com source, the mine has reserves of around 5 million tons with CV of 6,000-7000 kcal/kg (ADB) and total sulphur of 1-2%. The company is still seeking more buyers as it produces around 100,000 tons of coal per month.

Editing by Adianto P. Simamora