Dual-listed L&M Energy shares are expected to remain in a trading halt until next week, when it announces an update on capital-raising.
LME said, in mid February, before its cashless takeover of private sister company L&M Coal Seam Gas, it intended to go to shareholders and institutional investors to raise as much as $10 million.
LME shares, which have traded at a year-rolling high of 19c, have been trading around 15c in recent weeks.
Following the merger, which gained 94% shareholder support, LME now holds 12 permits, for coalbed methane gas covering almost 13,000sq km, including areas in Otago, Southland, the West Coast, Taranaki and the Waikato.
LME regards its Ohai and Waiau permit areas 70km northwest of Invercargill as having the greatest potential for development, with an estimated 173 petajoules of energy from coal seam gas.
At the conclusion of the February takeover, LME had 675.3 million shares on issue and became majority owned by three major shareholders: Swiss company Tangent International, Hong Kong company Campania Holdings and Geoff Loudon (L&M Group chairman), who collectively have an 82.8% share, the balance being held by small shareholders.
