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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
