Brisbane-based CSM producer Arrow Energy – which is taking a strategic stake in Pure Energy before it lists on the Australian Stock Exchange – yesterday said it could increase its stake in Pure Energy from an initial 14% to about 25% if it exercised all its options.

Perth-based Pure Energy is offering a total of 25 million 20c shares, together with one-for-two free attaching options. Arrow has the rights to an allocation of up to 12.5 million 20c shares, together with the options.

Arrow said the indicative timetable for the Pure Energy IPO meant priority and public offers should open on July 10 and close on August 25, with the quotation of shares and options on the ASX from September 15.

Early last month, Arrow made a seed capital investment of $1 million in Pure Energy, acquiring 9 million shares and 9 million 30c options for its initial 14% shareholding.

Proceeds from the IPO will go towards Pure Energy’s projects, which consist of five CSM exploration permits in Queensland’s Bowen Basin (two granted tenements covering 13,000 square kilometres and three permit applications covering 4900sq.km), and a single CSM permit in eastern Tasmania covering 11,300sq.km.

Arrow has entered into a farm-in agreement with Pure Energy, providing the opportunity for it to earn up to a 50% interest in either tenement ATP 758 or ATP 759, located in the Bowen Basin adjoining CH4 Gas’ Moranbah project tenement area.

Arrow also has the right to farm-in to a further tenement of Pure Energy’s Queensland application areas (ATP831, ATP 756, or ATP 806) once their application has been granted.

Arrow director Robert Day has been appointed Pure Energy chairman and Arrow chief financial officer Shaun Scott as a non-executive director of Pure Energy.