Austex Oil Ltd (AOK) endured a disappointing debut on Tuesday, falling by as much as 17.5% to 33 cents in the first hour of its trade.
The company issued 50 million new shares at 40 cents per share to raise $20 million.
Exploring for oil leases in the USA is the company's principal activity.
Austex said in its prospectus that its leases cover 1,000 acres (4.05 square km) and contain more than 96 oil wells, which are currently in the process of being re-worked and brought back into production.
The company said it is planning to use radial jet enhancement technology to increase production.
Austex chairman Peter Power estimated that as little as 5% of the resource has been recovered in the company's leases in Oklahoma, which he says, contains approximately 6.1 million barrels of certified oil reserves.
The oil exploration company's first oil sales were made in December 2006.
At 1:00PM AEST shares in Austex had dropped even further, down by 18.67% or 7 cents at 30.5 cents.
