17 September 2014

NZ resource group takes AIM

25/01/2010

Aussie entrepreneur Ian Gowrie-Smith plans to float New Zealand offshore oil play Kea Petroleum with a £6m AIM funding.

Aussie entrepreneur Ian Gowrie-Smith plans to float New Zealand offshore oil play Kea Petroleum with a £6m AIM funding.

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 who founded UK drug groups Medeva and SkyePharma and floated Papua New Guinea-focused Rift Oil three years ago, is chairman of 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’, who both backed Rift Oil, are among pre-float investors who have put some £7.2 million into Kea since September at 5p a share.

That price compares with a hoped-for 8p for the AIM launch, says executive director David Lees, who says the company intends to start drilling in two months and aims to achieve first sales within a year. RBC Capital Markets is designated nominated adviser and broker to Kea, which struck a deal whereby Canada-based Methanex Corporation will fund one of the wells in exchange for a commercially priced off-take agreement for the gas and a share of development profits.

Lees, like chief executive officer Dr David Bennett a former Rift Oil luminary, argues the Taranaki and Northlands basins are notably more hospitable and better provided with infrastructure than Rift’s PNG prospects. Kea, which hopes to establish a £60 million AIM value with this float, has also applied for some offshore New Zealand licences.

Rift delivered its original AIM backers a three-fold return over four years when Talisman Energy took it over last year, though not all Gowrie-Smith ploys have fared that well. Investors in Kea, one of whose exploration wells is called Beluga, will be hoping for a similarly appetising payback this time.

Tags: AIM, Fundraisings, New Issues

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Directors' Pay on AIM 2014

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1,044 AIM-quoted companies. The full report is available to order for £365 + VAT. Click here for more info

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

Nairobi is one of the world's most densely populated cities

Avanti wins Kenyan deal 12/09/2014

Broadband-by-satellite operator Avanti Communications (AIM:AVN) has won a deal to provide its services in Kenya.

Tags: Business in Africa, Contract wins

Mariana pushing hard at Condor de Oro 12/09/2014

Latin American gold play Mariana Resources (AIM:MARL) has reported results from its drilling programme in Peru. 

Tags: Gold, Mining

Karelian finishes sampling programme 04/09/2014

Finnish miner Karelian Diamonds (AIM:KDR) has completed the sampling programme of three target regions.

Tags: Diamonds, Mining

Urban & Civic wins Cambridge plan 04/09/2014

Property developer Urban & Civic (LSE:UANC) has won a deal with the MoD to redevelop former RAF barracks.

Tags: Property

Amur updates reserves 29/08/2014

Russian copper play Amur Minerals (AIM:AMC) has upgraded the mining reserves of its Kun-Manie site by 25 per cent. 

Tags: Mining

 Beowulf still roaring 29/08/2014

Swedish iron ore play Beowulf Mining (AIM:BEM) has reported its interim results.

Tags: Mining

More News