11th Feb 2014 11:55
LONDON (Alliance News) - Kea Petroleum PLC Tuesday said the process of its heads of agreement for the PEP51153 licence, including the Puka discovery, is in final due diligence, and conclusion of the deal is expected during the first quarter 2014.
The New Zealand-focused oil and gas company said the heads of agreement will result in a staged assignment of interest in the PEP 51153 site, which will be funded through the appraisal of its Puka discovery. One firm well and up to three further wells will be fully funded by the new partner, an unnamed oil and gas company on the Australian Stock Exchange.
Kea also said that a total of 13,791 barrels of oil was sold in the fourth quarter of the calendar year 2013, generating USD1.2 million of revenue.
The company said that Puka production has been reduced in January due to mechanical failure of the down hole pump. Kea said that planning is underway to make significant repairs to the down hole equipment which should be completed for production to recommence during March.
Kea Petroleum shares were up 4.2% to 1.07 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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