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

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021