Kea Petroleum initiates 5.0m placing to raise money for drilling

New Zealand-focused oil and gas company Kea Petroleum has initiated a placing to raise money to partly fund the construction of new production facilities and drilling of the Angus prospect.

New Zealand-focused oil and gas company Kea Petroleum has initiated a placing to raise money to partly fund the construction of new production facilities and drilling of the Angus prospect.

The AIM-listed company reported a placing of up to 35.7m units at 14p per unit, to raise up to £5.0m. It said that it had received unconditional commitments to subscribe for 21.4m units, representing a committed investment of £3.0m.

The company revealed that recent successful flow testing of Puka 2 and the imminent restart of Puka 1 required the construction of new production facilities and said that the funding would be applied partly towards their completion.

It added that there was a requirement to drill a further well in PEP 51155 prior to the end of September 2013 as part of a committed exploration work program for the permit.

Following interpretation of existing 3D data recently made available to Kea, it said that another Mt Messenger prospect similar to Puka had been identified on PEP 51155. The funds being raised would be able to assist in financing the drilling of this prospect, known as Angus, prior to the required date, the company added.

Additionally, it said that it also intended to drill up to three further Puka wells from the existing surface location during the balance of 2013 depending on revenues from oil production.

Ian Gowrie-Smith, Chairman of Kea Petroleum, commented: "We are pleased that investors continue to support the company in maintaining its momentum to exploit the Puka discovery, as well as enabling the company to carry out it permit obligations. The majority of the commitment costs are fortunately now behind us."

Kea Petroleum's share price was down 3.53% to 6.15p at 14:03 on Thursday.

MF

Recommended

Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022
Three Sharia-compliant growth companies
Share tips

Three Sharia-compliant growth companies

Professional investor Scott Klimo of the Saturna Al-Kawthar Global Focused Equity ETF tips three Sharia-compliant stocks.
30 Jun 2022

Most Popular

How to find the best dividend stocks
Income investing

How to find the best dividend stocks

Stocks that pay dividends tend to outperform the market over the long run - as well as providing an income. Here, Rupert Hargreaves explains the best …
28 Jun 2022
Gold has been incredibly boring to own – but that’s no bad thing right now
Gold

Gold has been incredibly boring to own – but that’s no bad thing right now

Stocks, bonds and cryptocurrencies have all seen big falls this year. But gold remains at its one-year average. It may be dull, but it’s doing what it…
29 Jun 2022
What the end of the 1970s bear market can teach today’s investors
Stockmarkets

What the end of the 1970s bear market can teach today’s investors

The 1970s saw the worst bear market Britain has ever seen, with stocks tumbling 70%. Things have changed a lot since then, says Max King. But there ar…
28 Jun 2022