IPO FILING: Ellora Energy (LORA)

Ellora Energy Inc. has just joined the line of possible initial public offerings.  While no IPO terms were listed, it does plan to sell up to $100 million in securities for filing purposes.  Ellora calls itself an independent oil and gas company in the exploration, development and production of onshore domestic oil and gas properties that has been around since June 2002. Primary operations are in east Texas and adjacent lands in western Louisiana and the Hugoton field in southwest Kansas.

As of December 31, 2008, the company owned working interests in 426 gross (319 net) wells, and for the three months ended December 31, 2008, its average net production was approximately 46.6 MMcfe/d. At December 31, 2008, its estimated total proved oil and gas reserves were approximately 194 Bcfe. Also, its proved reserves are approximately 74% gas and 45% proved developed; and its total proved reserves have a reserve life index of approximately 14.4 years.

The use of funds is earmarked for repayment of a portion of debt.  As of April 6, its total credit facility borrowings were $141 million.

Merrill Lynch & Co. and Raymond James are listed as lead underwriters; co-managers are listed as KeyBanc Capital Markets, Tudor Pickering Holt & Co., Howard Weil, Tristone Capital, and Thomas Weisel.   The company has applied to take the “LORA” ticker on NASDAQ.  Full SEC filing details are here.

JON C. OGG