14th Jan 2015 11:10
LONDON (Alliance News) - Kea Petroleum PLC on Wednesday said it has shut in production at the Puka site in Taranaki in New Zealand.
Kea said it has been unable to resolve the mechanical issues it has faced with the Puka-1 well. It had been attempting to fix the problems while continuing production from Puka-2.
Kea said it has not been able to resolve the problems with the current equipment available and has, amid the fall in the oil price, decided to shut in production until the economics of the project improve.
The group also said it remains in talks with potential farm-in partners for the Mercury, Mauku and Shannon prospects, all of which are located in New Zealand.
Shares in Kea were down 37% to 1.32 pence on the news, the worst performer in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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