Kea Petroleum has acquired a 10% interest in PEP38524, an offshore area situated near New Zealand's South Island from AWE New Zealand. The Company will contribute towards the cost of the Tuatara-1 exploration well to a maximum that is not expected to exceed $3m, to earn its 10% equity. At the same time Kea has raised £7m through the placing of 43.75m new shares at 16p each.
In addition, 21.875m warrants will be issued to subscribers in the placing on the basis of one warrant for every two placing Shares issued. The warrants have a two year maturity, expiring 18 May 2012, and an exercise price of 23p per share.
Chairman Ian Gowrie-Smith says: "We are very pleased to enter into this joint venture with AWE, who have demonstrated their technical and commercial expertise by developing and operating the Tui oil field, which recently reported passing the milestone of 1,000 days of strong production, with some US$3.5 billion of revenues generated in that time.
"In the event that Tuatara-1 is successful, we have high confidence in their ability to bring a discovery into development in an expeditious and commercially effective manner and we look forward to partnering with them in this and other exploration ventures in the future".
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