Sector: Resources

London is still attracting resource companies looking for funding. JKX Oil & Gas plans to raise £37.8 million at 265p to accelerate developments in Ukraine and Russia.

The fully listed company hopes to use the money to help meet projected capital expenditure this year of $230 million (£143.7 million). This includes procuring a rig for £14 million to develop reserves and appraise contingent resources at its Rudenkovskoye field, continuing a well work-over programme in Russia costing £17 million, building a liquefied petroleum gas facility in Ukraine for £7 million and carrying out an overall asset review.

Meanwhile, veteran Aussie entrepreneur Ian Gowrie-Smith plans to float Kea Petroleum with a £6 million AIM funding. Gowrie-Smith, a sometimes controversial but usually successful corporate player, chairs Kea, whose three exploration permits in New Zealand’s well-established Taranaki and Northlands basins hold an estimated 686 billion cubic feet of gas and 36.5 million barrels of oil. Serial investor Nigel Wray and Mark Knopfler of the band Dire Straits are among pre-float investors.