Oil and gas services company Titan Energy Services made a negative debut on the Australian stock exchange.

However, the company says it seeks to expand its equipment hire business and is in early stage talks with transport firms about potential joint ventures.

The Queensland-focused firm eased five cents to 95 cents on Wednesday, after hitting an earlier low of 87 cents on the Australian Securities Exchange.

Managing director Jim Sturgess said Titan’s initial public offer of five million shares at $1 each, plus 500,000 shares, discounted to 90 cents each under an employee offer, were oversubscribed.

The funds provided capital for expansion but would mainly be used for the recent acquisition of a portable accommodation camp firm, which added to Titan’s existing drilling business, Mr Sturgess said.

He said Titan had held some early stage discussions with transport and logistics companies about potential partnerships.

This was a logical next step, given Titan moved its equipment regularly.

“We’ve got a few trucks and transport assets ourselves, but what we would like to do is joint venture with a transport and logistics company, giving us surety we can move assets when we need to,” Mr Sturgess told AAP.

“It’s early stages yet – they’ve only been discussions.”

Titan wants to beef up its equipment inventory as having sufficient spares minimises downtime on drill rigs, which cost upwards of $35,000 a day to operate.

“We’re doing that on a piecemeal basis but would like to throw a bit more capital … to make that a fully fledged business.”

Mr Sturgess said Titan could increase its market share in conventional oil and gas services, which were the company’s mainstay.

Growth markets for Titan were coal seam gas and, to a lesser extent, shale gas, he said.