Kea Petroleum (AIM: KEA) has successfully completed its IPO (initial public offering) and has been admitted to trading on AIM (Alternative Investment Market of the London Stock Exchange) under the ticker KEA at 8 AM this morning.
The shares were place at 8 pence per share, raising a total of £6 million for the company to fund the drilling of one well on each of its petroleum exploration permits in the Taranaki basin. The funds will also be used to carry out initial seismic surveying on these permits as well as gravity and geochemical surveys on the group’s petroleum exploration permit in the Northland basin, and fund further wells under consideration.
Under a funding and participation agreement signed between Methanex Corporation’s subsidiary Methanex new Zealand Limited and the company last month, Methanex will fund the drilling of a well on Kea’s petroleum exploration permit PEP 51155 in return for certain rights to purchase the gas discovered and share in the profits from the development of the prospect.
The company has raised total proceeds of £7.2 million since its incorporation in September last year. An initial £1.2 million was raised in a pre-IPO financing at 5 pence per share with a one for two warrant at 8p.
The company has three onshore petroleum exploration permits in the Taranaki and Northland basin of New Zealand.
Kea Petroleum is headed up by David Bennet, CEO, who was previously a director of AIM listed Rift Oil, which was acquired in 2009 by Talisman Energy. Ian Gowrie-Smith, also a former director of Rift Oil, is non-executive Chairman of Kea.
Disclosure: The author holds no positions in the company