Sunset Energy (SEY) fell by as much as 12.5% today after debuting yesterday at a 60% premium to its issue price of 20 cents.
The company rose by 12 cents to close at 32 cents yesterday.
Sunset was set up primarily to acquire an equity interest in energy projects in the United States.
The Company has entered into an Exploration Agreement with Solimar Energy, an oil and gas company with several petroleum assets in California, and interests in oil and gas projects in the region.
Sunset can earn in a 50% interest on leases acquired and wells drilled within the Maricopa Prospect and Deer Creek Prospect in California by funding 100% of the cost of one well on each prospect.
From that time on, all costs and revenues from the projects will be shared on a 50/50
basis.
Solimar will remain responsible for the management and operation of the Prospects.
The Maricopa Prospect is located within the Midway-Sunset Oil Field and the company said it is one of the largest producing oil fields in California.
The Deer Creek Prospect is located in the San Joaquin Basin which has a history of generating several tens of billions of barrels of oil.
"The Directors believe the prospects have the potential to deliver commercial oil production," Sunset said in its Prospectus.
"The Independent Geologist's Reports have identified potential development well locations, which will form the basis of initial well locations and development opportunities."
Sunset fell by 3.5 cents today to close at 28.5 cents.
