Kea Petroleum gains on drilling update in New Zealand

Oil and gas company Kea Petroleum advanced Tuesday after announcing significant progress to its drilling and exploration programme in New Zealand.

Oil and gas company Kea Petroleum advanced Tuesday after announcing significant progress to its drilling and exploration programme in New Zealand.

The group has spudded the Mauku 1 well, recommenced drilling at the Puka 2 well and completed the acquisition of the Puka 3D seismic.

Mauku 1 was spudded earlier this month and was drilled to the surface casing point of 502 meters. It will be drilled to a total planned depth of 3,400 metres using a new rig with a higher capacity more suitable for the well.

Drilling will resume at the Puka 2 well in February after it was suspended at the surface casing point last November due to the commencement of seismic recording.

The Puka 3D seismic survey, located onshore in PEP51153, was acquired on schedule and under budget. Field restoration work has been completed and initial processing of the survey data has started.

"We are delighted by the progress being made in our drilling work at Mauku 1 and at Puka 2, where we are on track to drill to total depth at both sites in the coming weeks," said Ian Gowrie-Smith, Chairman of Kea Petroleum.

"We are continuing to negotiate the farm out of Mauku and remain optimistic of signing an agreement in the near future.

"We have also made progress with further exploration of the Puka field and expect initial results from 3D seismic work in [the second quarter of 2013]."

Shares jumped 4.76% to 8.25p at 12:30 Tuesday.

RD

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