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Oil and gas company PT Benakat Petroleum Energy plans to sell 38.2 percent of its equity in an initial public offering next month, the offering’s underwriter said on Tuesday.

The Capital Market and Financial Institutions Supervisory Board (Bapepam-LK) approved the IPO on Tuesday, said PT Danatama Makmur, the appointed underwriter.

Benakat planned to use the proceeds, estimated at Rp 1 trillion ($108 million), to finance exploration and for working capital, Danatama Makmur said.

“The book-building will run from Jan. 19 until Jan. 28 and the listing at the stock exchange is scheduled for Feb. 11,” Steffen Fang, vice president of investment banking at Danatama Makmur, said on Tuesday.

The offering of shares is scheduled for Feb. 3 to Feb. 5, and the price has not been set.

Benakat earlier said every 23 shares would come with 13 warrants, with each warrant entitling the holder to buy one of the company’s shares in three years at a price to be determined later.

The company booked a net loss of Rp 8.1 billion in 2008, after suffering a loss of Rp 2.2 billion in 2007.

Benakat president director Arifin Wiguna said the company, through subsidiary PT Benakat Barat Petroleum, had a contract with PT Pertamina EP, a subsidiary of the state oil and gas firm, to operate the Benakat Barat block in Prabumulih, South Sumatra.

He said the Benakat Barat block produced about 2,000 barrels of oil per day.

“Production at this block is scheduled to increase to 4,000 barrels of oil per day by year-end,” Arifin said.