New flotation this one...not sure what the market cap is, but has some interesting assets.....

.

Think I've missed the boat here...forgot about this one....nice climb....

this tipped in this weekends Red Hot Penny Shares with 12 month price target of 50p - that's some target given they're only 16p. May have a tickle this week.

the old RIFT oil crew in charge of these. they made a good profit from them before they were taken over. could this rub on to these?
Alex

it's certainly the sort of stock to have lemming appeal, especially as london is likely to open strongly for all sorts of (silly) reasons

Incredible share.

Bought a few...we shall see...

like CHAR do you mean mitzy?
now CHAR is surely absolutely spiffing!?

I missed these cynic which is odd as I liked Rift.

but you didn't miss CHAR which you were promoting so avidly very recently - until it started its stick impersonation

Can we keep to the script ie KEA .

you can always respond on the CHAR thread, but you decline to do that too!

KEA
as i said originally, this is a good "lemming stock" but very strange to deal in with 3 x uncrossings daily

Bouncing now.

if bouncing = down, then yes

I am not holding;

of course not, despite strong indications to the contrary in previous postings ..... i forgot you only ever buy shares that go up

Lol....

write this one down ...

Kea Chairman Ian Gowrie-Smith said:
"We are very pleased to have encountered oil in Wingrove-2, and with a deeper oil production 'upside' which will be tested
at the time of completion of this well as a producer. In a very short time we have gone from an exploration company to one
expecting to be in production within the next six months and we still have the rest of our drilling and exploration
programme in front of us."

================

so far a good little punt here ..... i fully expect sp to get carried away in the excitement - it's up a couple of pence this morning - but i do not see any comment re the magnitude of this find, though it does seem to be at least modestly commercial

Well...it's climbing...

Are you in rf..?

he is; i is; you ain't!

For a new flotation : this is doing fine for the moment....with this and MATD : I'm doing not so badly....shame about my dive into PET without thought !.

Sold out at a smallish profit....will come back later....not sure if the sp will stay up or not or go higher and next drilling will take several months...

I'm not in.

nice, good info and rewarded.

glad i took my profit yesterday!

wow another great performance today.

that rise looks as though it may have come at last knockings, so you'll need to take a look first thing tomorrow ..... it's on my (sporadic) watchlist but i no longer hold

This has got 50/60p written all over it..

How can you say that ?....it looks like a neat little company ....but how do reckon that it's going to rise threefold ?....

Its my mistake not to buy @9p thats why.

you'ld better hope the following does not apply ...... "mortality is high among young Kea, with less than 40% surviving their first year"

=======

mitzy - it's also a mistake not to bank (partial) profits, but at least this one seems to have some oil, unlike CHAR which is currently making you all just believe so

Knock back.

Classical pump and dump.

i'm very glad i had the sense to take profits ages ago .... if i were a holder, it would worry me a lot to see 44m traded and sp collapsing about 30% as well

Down again this morning..

and you're still holding? ..... or is this another where you baled out at the top?

I never held..

Just topped up another 30k, showing as a sell though - ????? Hopefully fly again when they strike oil again within a fortnight. Total punt but got a good feeling on this one - Read the New Zealand write ups, not nob head retired BP idiots living it up on a Thai Beach with their prostitute wives.

what on earth was that little hissy fit about????
i like the "when" too - surely more "IF"

.

Total Punt - But read everything thats out there to be read and couple of friends of mine who are in 'Security' out in Iraq are in big time. They'll be at drilling levels within a fortnight where the oil 'should' be - fingers crossed , hopefully a quick in out jobby - Bit like them BP wallers with them Ladyboy types .

.

Yeah of course, they just been in Kazahkstan with some other Kiwi Guards, thats where they got the low down.

does he know where NZ is?

.

course I know where NZ is - Brussels is the Capital

and their currency is the Scheckel

then learn to spell it!

I T

There, did it for him! ;o)

I'm dislexical

My Inglish teechor wis dilocksic, it didint afekt my lurning tho.

Oh dear.

..heading back to 9p imo.

Been stuffed on this and on SQZ......come back to a fine mess.....but others holding up well....take your eye off the ball and voila !....

clearly they did NOT know the difference between Kaz and NZ, drilled in totally the wrong place, came up with zilch, and sp collapses!

Out of this now....had some business to attend to when it peaked...had I been watching : would have jumped ship then.....on to pastures new....

full of haystacks?

ha ha.....no MATD enough....

strewth ..... i too hold MATD and had not noticed that sudden surge (currently 151/153), though friday close distorted by showing a bit higher still

yep....nice rise for that this morning....check out SEY (risky) but possible short term gain up to 140p if rig repair is quick....

.

.

up up and away?

surely you don't hold these Mr S ...... it's not even a minnow; it's amoeba and your opinion of even minnow oilies is clearly voiced

I sometimes trade on excitement Mr Clinic, aka momentum trading,I think at the time KEA jumped by a huge % ,I jumped too and ended up with a few as it plummeted.

No biterness in me mea culpa, but it might return eventually

Big faller.

Yeah...not exactly on the up, anymore....

Following the resounding success of our first two events, Mining and Resources Quarterly is proud to offer another chance for you to meet, hear from and ask questions of key senior management figures from carefully selected companies.



This event offers an unique opportunity not only to hear about the latest plans from some of the most exciting companies in the sector, but also to put your questions to the people that matter. What is more, there is a free drinks and canapés reception where you can mingle with industry leaders and your fellow investors. Make sure you don't miss this unique opportunity to get the answers you need from the people who make the market.

NEXT EVENT

Date: Wednesday 23rd May 2012

Venue: Novotel, London Tower Bridge, 10 Pepys Street, London, EC3N 2NR

Registration: 6.00pm

Presentations: 6.30pm followed by a drinks/canapés reception



Companies Presenting:



Magnolia Petroleum Plc is an AIM quoted, US focussed, oil and gas exploration and production company with interests in 70 producing properties and non-producing assets covering 16,515 gross acres and 3,000 net acres primarily located in the oil rich Mississippi play in Oklahoma, 4,850 gross acres and 375 net acres in the highly productive oil play in the Bakken/Three Forks Sanish fields in North Dakota as well as the substantial and proven Woodford and Hunton plays, in Oklahoma. The Company focuses on producing areas where the application of horizontal drilling and/or hydraulic fracturing and other techniques offers scope to significantly improve recovery/flow rates. Targeting proven areas lowers exploration risk, illustrated by Magnolia's tremendous success rate achieved so far - 27 out of the first 28 wells in which the Company has participated in have been commercially successful. In addition Magnolia focuses on fields that predominantly produce oil rather than gas securing higher revenues and margins as a result of the higher oil price.



Kea Petroleum (AIM:KEA) is an oil and gas explorer in New Zealand and Australia. Taranaki, New Zealand where Kea is currently exploring has a long history of proven reserves. In 2010 New Zealand Energy Corp and Tag Oil both struck oil resulting in share prices increasing 165% and 100% respectively.

2012 has seen the beginning of Kea’s most exciting and active year. On 10 April, it struck oil and is awaiting equipment to test a field with a potential between one and three million barrels. Two weeks later it commenced drilling its second 2012 well. Later drilling will include one co-funded by Methanex, the world’s largest supplier of methanol.

Ian Gowrie-Smith, Chairman will detail Kea’s exciting prospects.



Click here to go to Event
More companies to be announced

Kea Petroleum (LON:KEA) pushed 7% to 10.75p during early trading after the company said that work to start production from its recent discovery in the Puka 1 well has been successful, with the well flowing an "excellent quality light oil." The company said that preparations are now underway to start longer-term production testing of the well to establish production rates and reservoir characteristics. Kea has maintained its original estimate of a gross recoverable resource of 1 million barrels of oil with a potential upside of up to 3 million barrels of oil. "These results couldn't be better or more encouraging. If further testing confirms our expectations, Puka-1 will transform Kea into a profitable oil producer," Chairman Ian Gowrie-Smith said.


http://fox-davies.com/emails/views-from-the-trading-floor.aspx

Kea Petroleum reveals significant progress with drill programme
1:46 pm by Jamie AshcroftKea is on track to drill to total depth at both sites in the coming weeks



Kea Petroleum (LON:KEA) this afternoon said its drilling programme in New Zealand had made significant advances.

The company is working on the Mauku 1 well and the Puka 2 well.

It has also now gathered 50 square kilometres of 3D seismic across the onshore PEP51153 licence area. This was completed on schedule and on-budget, Kea said. And the findings are due in the second quarter of this year.

"We are delighted by the progress being made in our drilling work at Mauku 1 and at Puka 2, where we are on track to drill to total depth at both sites in the coming weeks,” said chairman Ian Gowrie-Smith.


“We are continuing to negotiate the farm out of Mauku and remain optimistic of signing an agreement in the near future.”


The initial onshore Mauku 1 well, in the Taranaki basin, was spudded earlier this month and, following the drilling and casing of the first 502 metres, drilling has now paused while a higher capacity rig is mobilised to the well site.

The Icelandic Drilling Odinn rig is due to arrive in around three weeks time, and it will then drill the well to a target depth of 3,400 metres – which is expected to take 40 days.

Mauku prospect is estimated to have prospective resources in the order of 485bn cubic feet of gas and 27mln barrels of associated liquids.

Meanwhile the Drillforce Rig 6 unit, which drilled the first 502 metres of Mauku 1, has now moved to the Puka 2 location, where drilling has now resumed from the surface casing point – work paused at Puka 2 to allow 3D seismic to be completed without interference.

Kea expects Puka 2 will reach in target depth by mid-February.

Another share riser today was New Zealand focused explorer Kea Petroleum (LON:KEA), which advanced 26.67%, after it confirmed a new oil discovery in the Puka 2 well.

It said that Puka 2 encountered 4.6 metres of reservoir sands - with a ‘vertical thickness’ of 3.3 metres – and analysis indicates that the discovery has some of the highest porosity and permeability measures recorded in the area to date.

Kea says it will case and subsequently test the discovery as soon as possible.

Oil explorer Kea Petroleum (LON:KEA) had news from New Zealand this week as it confirmed a new oil discovery in the Puka 2 well.

It said that Puka 2 encountered 4.6 metres of reservoir sands - with a ‘vertical thickness’ of 3.3 metres – and analysis indicates that the discovery has some of the highest porosity and permeability measures recorded in the area to date.

Kea says it will case and subsequently test the discovery as soon as possible

Kea Petroleum leaps after hitting oil

http://youtu.be/Z1gNTL4dAXU

Will hold these till the discovery results.

indeed then kerrrrrrrrrrrrrrrrrchinnnnnnnnnnnnnnnnnnngggggggggggggggggg!

Kea Petroleum extends New Zealand permit
Wed 20 Feb 2013

KEA - Kea Petroleum

Latest Prices
Name Price %
Kea Petroleum 10.12p -2.41%

FTSE AIM All-Share 754 -0.08%
Oil & Gas Producers 7,967 +0.55%

LONDON (SHARECAST) - Oil and gas company Kea Petroleum has extended the permit for the PEP 51155 in New Zealand.

The area covered by the permit was increased by about 9.0% to 286km2, allowing Kea to conduct exploration activities over the Hickman lead.

The company is planning to acquire about 58km of 2D seismic over the Hickman lead, identified as an Alliance Project.

Hickman is partially funded by Methanex under the pre-existing Alliance Agreement between Methanex and Kea.

“The Hickman lead is a large sub-thrust feature that lies between the current Kea Mauku 1 well currently being drilled on PEP 381204 to the North and the Mangahewa field to the South, which addresses a mean possible recoverable resource of 173bn cubic feet of gas and 6.0m barrels of condensate as per management's conservative estimates,” the group said in a statement.

Shares fell 2.41% to 10.12p at 10:00 Wednesday.

SM - Shares in the Aim-quoted explorer have gained 36% since it announced (14 Feb) the find meant it could ‘look forward with confidence to an early and substantial cash flow’. A flow test on Puka-2 would offer confirmation of this potential and is expected in the near term.

The £55.9 million market cap is set this year to drill as many as seven more wells in the region, the most high profile of which will test the Mauku prospect. House broker WH Ireland estimates this alone could be worth as much as 54.2p a share if successful.

Kea is in the process of attempting a farm-out of Mauku. Having raised £7 million in a placing earlier this year, and with £6.6 million of cash already on its balance sheet, it should be fully funded for its 2013 plans regardless.

Yesterday, Kea Petroleum announced that it was granted an extension to the permit for the PEP 51155 area in New Zealand. The area covered by the permit has increased by around 9% up to 286 sq km. This allows Kea to explore the Hickman lead which had been interpreted to extend beyond the previous boundary. Planning work is now underway for a 2D seismic programme to assess the Hickman prospect. This is being carried out through Kea’s pre-existing Alliance Agreement with Methanex, which is partially funding the work. The Hickman lead is a large sub-thrust feature that lies between the current Mauku-1 well being drilled on PEP 381204 to the North and the Mangahewa field to the South, which addresses a mean possible recoverable resource (P50) of 173 billion cubic feet of gas (bcf) and 6 million barrels of condensate as per management’s conservative estimates.

Our view: Kea’s latest announcement of extension to the permit at the PEP 51155 area in New Zealand is very encouraging given the high prospectivity at the Hickman lead. This news comes close on the heels of a slew of positive announcements from Kea. Only last month, Kea confirmed a new oil discovery in the Puka 2 well. This deeper working petroleum system augurs well for the wider prospectivity of the basin, where 6-8 wells are planned through the course of this year. Analysis shows that the discovery has some of the highest porosity and permeability measures recorded in the area to date. Puka 2 would be likely to have much better flow rates than Puka 1 and Kea can now expect an early and substantial cash flow. At the Mauku prospect, which is estimated to have prospective resources to the tune of 485 bcf of gas and 27 million barrels of associated liquids, negotiations are ongoing to farm out the prospect and Kea remain optimistic of signing an agreement in the near future. Kea is fully funded through 2013, with existing cash of £6.6m on the balance sheet and an additional £7m in equity finance, recently raised. Given this strong pipeline of prospects, we are optimistic of Kea achieving its production growth targets, resulting in a meaningful upside to the stock. We maintain a Speculative Buy on the company.




http://www.proactiveinvestors.co.uk/columns/hb-markets/12177/hb-markets-breakfast-today-including-kea-petroleum-rexam-and-rsa-insurance-group-12177.html

Up 6%

Recovered from yesterday.

self-explanatory ....

Cynic, these recovery shares are making money. :-))

on that nonsense logic, i take it you bought a slab of these in mid 2010 when they previously crashed and have now bought AVM too

lol, Nonsense thats fine with me. Not interested in 2010 :-))

of course not; you have the benefit of both 20/20 hindsight and foresight and thus know when a share absolutely cannot fall further

Have you got your computer upside down, mine shows this share rising at a pace .
Just waiting for the flow test on Puka-2. :-))

i see a 5 year chart!

You sound like Mystec Meg , Joking aside I know what you mean . I may well sell on the results.

Mauku Drilling and Puka Testing Update
RNS
RNS Number : 6585Y
Kea Petroleum PLC
26 February 2013



For immediate release
26 February 2013




Kea Petroleum plc

("Kea" or the "Group")



Recommencement of Mauku Drilling and Puka Testing Update



Kea Petroleum plc (AIM: KEA), the oil and gas company focused on New Zealand, is pleased to announce drilling at Mauku and the completion of drilling prior to testing at Puka.

Mauku Drilling

The Icelandic Drilling Odinn rig has commenced drilling operations at Mauku. Mauku 1 was spudded in January 2013 using Drillforce rig 6 to drill surface hole to a depth of 507m prior to running 13 3/8" surface casing and suspending the well. Odinn has been moved onto the site and rigged up over the past three weeks and has re-entered the well in preparation to drilling ahead.

Mauku is being drilled to a planned total depth of 3,400m and drilling is expected to be completed in April. Half of the cost of the well is being funded by Methanex as part of the Alliance Agreement between Kea and Methanex.

Kea has been involved in extensive farm-out discussions with numerous parties. Although two of these parties have elected not to farm-in, talks are still continuing with multiple parties who have expressed an interest in participating in the well. However given the advanced status of the well, it will be difficult to conclude the negotiations within the project time constraints.

Puka 2 Testing

Drilling operations have concluded at Puka with the completion string installed and the well perforated in preparation for testing. Now that the drilling rig has been demobilised from the Puka location preparatory earthworks and the assembly of surface test equipment, tanks and oil transfer equipment can commence.

Testing of Puka 2 is expected to begin in mid-March and will run for between 30 and 45 days.



Ian Gowrie-Smith, Chairman of Kea Petroleum, commented:"It is with a mixture of excitement and trepidation that we look forward to the drilling of Mauku. In the event of success, the impact of owning 100% of Mauku would be transformational for Kea given that the Board estimates the upside potential prospective resource (P10) to be 1,031 billion cubic feet of gas and 61 million barrels of condensate (oil).

"Using the cash flow we expect from the Puka field, the Company will continue to develop some of the large prospective deposits in our extensive acreage within the Alliance Partnership with Methanex."

This release has been approved by non-executive director Peter Mikkelsen FGS, AAPG, who has consented to the inclusion of the technical information in this release in the form and context in which it appears.

P10 indicates at least a 10% probability that the quantities recovered will equal or exceed the estimate. This is a measure of uncertainty not geological or commercial risk

07:00


Kea Petroleum PLC - Interim Results


RNS





RNS Number : 8487Y

Kea Petroleum PLC

28 February 2013








For Immediate Release 28 February 2013



Kea Petroleum plc

("Kea" or the "Group" or the "Company")



INTERIM RESULTS FOR THE PERIOD ENDED 30 NOVEMBER 2012



Kea Petroleum plc (AIM: KEA), the oil and gas exploration company focused on New Zealand, is today pleased to announce its interim results for the six month period ended 30 November 2012.





Highlights



· Increasing pace of exploration, testing and production including successful test results at Puka 1



· Further oil strike at Puka 2 with likelihood of attractive flow rates



· Testing results of Puka 2 expected shortly



· Drilling operations have commenced at Mauku



· Revenue from testing Puka 1 of £382,000



· Pre- and post-tax loss of £1.49 million (30 November 2011: loss of £1.36 million)



· Cash on hand at 30 November 2012 of £11.35 million (30 November 2011: £10.69 million)





Drilling Schedule 2013



· Mauku-1 Q1 - Drill to 3400m depth



· Mercury Q2 - Offshore 3D seismic survey



· Puka-3 Q3 - Drill to 1600m depth



· Hickman Q2/3 - 48km 2D seismic survey



· Angus-1 Q3 - Drill to 1400m depth







Kea Petroleum's Chairman, Ian Gowrie-Smith, said:



"The discovery of oil at Puka was a vital step towards Kea achieving its ambition to become a significant player in oil and gas production. The drilling results confirm our belief in our active drilling programme and we look forward to building on our recent successes over the next 12 months. The recent Puka results have favourably positioned Kea to continue growing its production, whilst the drilling of Mauku has the potential to provide the Company with potentially significant near term upside.''

Kea Petroleum set for busy time in New Zealand
9:01 am by Philip WhiterowThe group recently spudded its first well on the Mauku field, which will drill to a depth of 3,400m.



Kea Petroleum (LON:KEA) is to follow up its recent oil discovery on the Puka field in New Zealand with significant further exploration this year.

Ian Gowrie-Smith, Kea’s chairman, said the oil discovery at Puka had confirmed the company’s belief in its active drilling programme.

Puka-1 generated £382,000 in revenues in the half year to November, though the well is still being appraised, which limited its contribution. A second well on Puka also found oil and is currently being flow tested.

The group recently spudded its first well on the Mauku field, which will drill to a depth of 3,400m.

Other work planned for 2013, all of which is in New Zealand, includes offshore 3D seismic at the Mercury prospect in the second quarter: a third well at Puka to a depth of 1,600m in the third quarter; 48km of 2D seismic at the Hickman prospect and a first well at the Angus prospect to a depth of 1,400m.

“The recent Puka results have favourably positioned Kea to continue growing its production, whilst the drilling of Mauku has the potential to provide the company with potentially significant near term upside,'' said Gowrie-Smith.

Kea posted an interim loss of £1.49mln (£3.0mln) and finished the period with cash on hand of £11.4mln.

Shares rose 4% to 10.75p.

Watch Kea Petroleum presenting at the oilbarrel conference.

Video Webcast

Successful Puka 2 Test Results

RNS


RNS Number : 7496B

Kea Petroleum PLC

08 April 2013







For Immediate Release

8 April 2013




Kea Petroleum plc

("Kea" or the "Group")

Successful Puka 2 Test Results

Kea Petroleum plc (AIM: KEA), the oil and gas company focused on New Zealand, is pleased to announce successful results from its initial oil production testing at Puka 2.

Encouraging production test results

During the initial clean-up flow period of 5 days, the well achieved an initial oil flow rate of 719 barrels of oil per day (BOPD) with an associated gas flow rate 0.419 million cubic feet per day (MMCFD) on a 22/64" choke over the initial 12 hour flow period. The oil has a density of 38°API and a pour point of 27°C. No formation water was produced during the flow period. The first shipment of oil from Puka 2 was dispatched to market on 31 March 2013.

Well production is now temporarily halted until Sunday 14 April 2013 to establish initial pressure build up.

Forward programme

The current test programme calls for a main flow period up to 45 days followed by a build-up period before continuous production can begin.

Design and construction of the Puka production station is well advanced with commissioning expected during the shut-in period of the Puka 2 test. Kea anticipates to bring Puka 1 online in the latter stages of the Puka 2 test to determine optimum production rates from the two wells.

The initial results of the test confirm the previous log and MDT analysis. Whilst the oil is similar to Puka 1, Puka 2 has considerably better production characteristics with a low gas oil ratio and higher oil flow rates.

Kea has already obtained consents for up to an additional four wells on the current Puka surface location. Following initial interpretation of the Puka 3D Seismic Survey acquired in late 2012, Kea is examining potential well locations to be accessed from the existing surface location as part of the appraisal and development programme for the greater Puka field.

Mauku Update

Drilling at Mauku has reached 2,709m. The total depth is expected to be 3,400m which, on current expectations, should be reached in 7-10 days.



Ian Gowrie-Smith, Chairman of Kea Petroleum, commented:



"We are delighted with these results - a headline flow rate at Puka 2 in excess of 700 BOPD with no water production is excellent. We intend to proceed as quickly as possible in commissioning the production facilities and in further developing the Puka field.



"Kea is now on the threshold of generating a significant revenue stream from Puka. Combined with imminent results from drilling at Mauku, these are exciting times for the Company."



This release has been approved by non-executive director Peter Mikkelsen FGS, AAPG, who has consented to the inclusion of the technical information in this release in the form and context in which it appears.

Kea Petroleum delighted with Puka 2 test results
By Philip Whiterow April 08 2013, 8:41am The well achieved an initial oil flow rate of 719 barrels of oil per day.The well achieved an initial oil flow rate of 719 barrels of oil per day.



Kea Petroleum’s (LON:KEA) second well on its Puka field in New Zealand has produced strong flow results in its initial testing period.

The well achieved an initial oil flow rate of 719 barrels of oil per day (BOPD) with an associated gas flow rate 0.419mln cubic feet per day (MMCFD) on a 22/64" choke over the initial 12 hour flow period.

Ian Gowrie-Smith, Kea Petroleum’s chairman, said: "We are delighted with these results - a headline flow rate at Puka 2 in excess of 700 BOPD with no water production is excellent. We intend to proceed as quickly as possible in commissioning the production facilities and in further developing the Puka field.

Well production has now been temporarily halted until Sunday 14 April to establish initial pressure build up.

The current test programme will see a 45 day main flow period followed by a build-up period before continuous production can begin.

Puka 2’s oil is similar to Puka 1, but has considerably better production characteristics with a low gas oil ratio and higher oil flow rates, Kea added.

Commissioning of the Puka production station is expected during the shut-in period of the Puka 2 test. Kea anticipates bringing Puka 1 online in the latter stages of the Puka 2 test to determine optimum production rates from the two wells.

Elsewhere, drilling at the Mauku 1 exploration well has reached 2,709m. The total depth is expected to be 3,400 metres which, on current expectations, should be reached in 7-10 days, added the company.

"Kea is now on the threshold of generating a significant revenue stream from Puka. Combined with imminent results from drilling at Mauku, these are exciting times for the company," said Gowrie-Smith.

dc kea appears as if it might bounce back imminently are you still in here?

No gibby closed the doors on this one. All the best and hope it does well for you.

thanks dc - well I reckon we have blue times ahead here might be worth putting back on the radar.........

http://www.proactiveinvestors.co.uk/companies/news/61829/kea-petroleum-shares-could-be-revived-by-a-farm-out-deal-61829.html

Kea Petroleum shares could be revived by a farm-out deal
By Jamie Ashcroft October 04 2013, 3:46pm Puka currently produces around 200 barrels per day, and at this level the operation breaks even.Puka currently produces around 200 barrels per day, and at this level the operation breaks even.

Kea Petroleum’s (LON:KEA) downtrodden shares could be set for a revival if a deal can be agreed to continue the development of the Puka oilfield in New Zealand.

A strategic review of the project was launched in September, and chairman Ian Gowrie-Smith has revealed to Proactive Investors that Kea has received ‘all sorts’ of approaches, including offers to buy the entire field.

He says, however, that the best option for the company will be decided in the coming weeks.

A ‘farm out’ or partnership deal is understood to be the most likely outcome. The small cap oil producer has been in talks with larger companies for some time and a transaction could be agreed before the end of October.

The support of a new partner would allow two more wells to be drilled to lift production and get the field development back on track.

Puka currently produces around 200 barrels per day, and at this level the operation breaks even.

The two additional wells, with an estimated combined cost of around US$5mln, are expected to increase the field’s production above the 500 barrel a day marker, which would make further development of the Puka field ‘self funding’ thereafter.

Well location is believed the reason for the lower than anticipated output. Interpretation of 3D seismic suggesting the Puka site is on the fringe of the main oil system.

But, more wells on the same location using the already developed infrastructure, remains a compelling option for the company.

“The economics of exploiting this field really requires us at a very minimum to put in Puka 3 and Puka 4, and put them in as soon as possible,” Gowrie-Smith said.

“We now have a production station that can house between one and six holes. The operating costs are basically fixed regardless of the number of holes. You need those facilities if you’re operating one hole or six. So the economics for Puka 3 and 4 are compelling.”

“Puka 1 and 2, at 200 barrels a day, allows the company to break even, but it is not enough to progressively develop the field. So we need to get a kickstart.”

Gowrie-Smith says ‘quite a number companies’ are interested in the asset and he believes Kea will be able to ink a deal in the ‘reasonably near term future.’

The first priority for Kea and its patient investors must be on securing sufficient cash for the next two wells.

Gowrie-Smith is confident a transaction will be agreed.

Once a deal is in place and funds are available to commit to drilling the project could move forward fairly quickly - rig availability is not a problem, no additional consent is required by the authorities and minimal site preparations are needed.

As such, drilling could start early in 2014, and Gowrie-Smith reckons the turning point for the shares will come with the confirmation that the drilling of Puka 3 and 4 can proceed.

He also says the sharp 60% share price fall since September’s production update was an over-reaction, with the understandable investor disappointment being exacerbated as one institutional shareholder sold out of a position – believed to be in the order of 14mln shares.

“It triggered a degree of nervousness among the larger pool of investors, who didn’t understand that this fall wasn’t from mass levels of unhappiness with the information [in the company’s update] but rather from one institution deciding to withdraw from small cap stocks.”

in other words news imminent on farm out + other bits and bobs

hopefully news around 2pm today

Recovering well over the last week, in the top 10 risers each day.

Closed up 27%

RNS out. Farmout deal will complete 'within seven days'. game changer!

Closed up 40.24%

duster! opportunity beckons perhaps...............................

A fall to 1.3p I expect.

mitzy smashed through 1p now bouncing absolute bargain got me some real cheap hope you did likewise - still cheap
gl

Off 70% today not good.

Off another 10% this morning.

Australian subsidiary suspended until well results, got out then with a profit £ 500
a lot of oil in n Zealand providing you have the right place its bubling to the surface so say American tip sheet

tanking again mitzy gl

well done black bird

wonder how far this will drop before bottom

Heavy faller.

Buy coming in now.

1p conversion rns! blue today??


RNS


RNS Number : 2390S

Kea Petroleum PLC

22 September 2014





For immediate release

22 September 2014






Kea Petroleum plc

("Kea" or the "Company")



Issue and Allotment of Ordinary Shares following Exercise of Conversion Rights



Kea Petroleum plc (AIM: KEA), the oil and gas company focused on New Zealand, announces that it has received a notice of exercise by Darwin Strategic Limited ("Darwin") to convert £500,000 of Darwin's Convertible Loan Notes at a gross conversion price of 1.0p per share. Details of the Convertible Loan Notes ("CLNs") were announced by Kea on 23 May 2014 pursuant to which 50,000,000 ordinary shares (the "Conversion Shares") now fall to be issued. These shares represent the final tranche of Conversion Shares to be issued in connection with the CLNs facility announced on 23 May 2014.

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Wednesday 15 October, 2014
Kea Petroleum PLC
Approval of New Work Stage at Mauku
RNS Number : 3463U
Kea Petroleum PLC
15 October 2014




For Immediate Release 15 October 2014

Kea Petroleum plc

("Kea" or the "Company")



Approval of New Committed Stage of Work Programme

and Part Relinquishment of Area

Kea Petroleum plc (AIM: KEA), the oil and gas company focused on New Zealand, is pleased to announce that on 10 October 2014, New Zealand Petroleum & Minerals (NZP&M), the government oil and gas regulatory agency, approved a new committed stage of the work programme in respect of Petroleum Exploration Permit 381204. The permit is located part on shore and part off shore in north Taranaki.

Kea drilled Mauku-1 on PEP381204 during Q2 2013. Mauku-1 intersected good quality Mangahewa "C" sands (161m net thickness) in a sub-thrust target. The sands were water wet.

Remapping of the seismic data, and 123 km of new pre-stack depth migration post Mauku-1, shows the well was drilled significantly down dip of a 20 km2 structural closure at Mangahewa level, and shows a larger closure at mid-Cretaceous Taniwha formation level.

The new work programme comprising 15 km of 2D land based seismic reflection data will extend the data coverage over the 20 km2 structural closure at Mangahewa level. This will help to define a better well location. Kea is in discussion with potential industry partners to farm-out the Mauku prospect.

PEP51153

On 13 October 2014 NZP&M accepted Kea's notice of surrender of Area A of Petroleum Exploration Permit 51153. Kea, with JV partner MEO New Zealand Pty Limited, determined that prospectivity in the 19.787 km2 area was insufficient to justify further exploration expenditure. The larger Area B (84.673 km2) around the Puka production site has been retained.



Ian Gowrie-Smith, Chairman of Kea, commented: "We are pleased to have come to an agreement with NZP&M that eliminates the need to commit to and finance the drilling of Mauku-2 during the coming 12 months and replaces it with a relatively inexpensive seismic programme. Since the drilling of Mauku, Kea and Methanex have carried out a substantial PSDM programme and remapped a very exciting structure to the North East of Mauku-1. The seismic programme should help clarify this prospect further and give the Company additional time and ammunition to find a farm-in partner. Kea always envisaged that Mauku-1 would need to be drilled to enable the structure to be accurately defined."

This release has been approved by non-executive director Peter Mikkelsen FGS, AAPG, who has consented to the inclusion of the technical information in this release in the form and context in which it appears.

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Who Should Attend?Date:

Thursday 14th May 2015

Venue:

Novotel Tower Bridge, London EC3N, 10 Pepys Street, London, EC3N 2NR

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