Livingstone issued 15 million shares at 20 cents each in its IPO, but debuted on the ASX at 35 cents.

All the funds raised will go to its key asset, half of the Forbes gas project in California, in joint venture with Australian company Orchard Petroleum, which already has a solid track record in that state.

Livingstone paid Orchard $US830,000 in cash for its interest. The debutante will also fund two-thirds of the cost three exploration wells.

The project is in the Forbes sandstone area, a major proven gas province with high historical rates of exploration success.

Orchard, the operator of the joint venture, has so far drilled three wells at Forbes. Two of these resulted in discoveries and are already producing to market.

Drilling at the next three wells will start in October or November depending on drill rig availability.

With the funds raised from its IPO, Livingstone can participate in five wells. The company said it would use a combination of future capital raisings and cashflow to fund future exploration.