30 November 2015

NZ resource group takes AIM

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

Cash Shells 2015

Published in September 2015 this annual research report provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. Order your copy today


Superb investment toolkit for private investors

SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.

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 2015

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1000+ AIM-quoted companies. The full report is available to order for £385 + 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

Be Heard takes first step towards building a new digital ad network

Advertising industry veteran Peter Scott has returned to the stock market as Executive Chairman of Be Heard (AIM: BHRD). The company has just raised £5.5 million and acquired digital marketing and analytics business, Agenda 21. This is the first step on a journey towards building a new network of digital marketing agencies.

German work ethic is good news for Sirius

Sirius Real Estate (AIM: SRE) interim results show the company on track for a shareholder return in the mid-teens for 2015 as a whole. Net asset value rose by 5.5 percent in the first half, and adding the dividend makes a 7.3 percent return for this period. Further property acquisitions and the refinancing of a significant loan will help boost future periods.

McKay sees a solid outlook for SE property

Property investor McKay Securities (LSE: MCKS) has reported a good set of results for the half year to September. Having raised £130 million in new debt and equity last year, the company has been putting these funds to work.

Starcom looks for new products to unlock growth

Starcom (AIM:STAR) has been a very disappointing stock since it floated on AIM over two years ago. Based in Israel, it has a range of tracking products which should be a good play on the internet-of-things theme.

AB Dynamics motors ahead

Automotive testing system manufacturer AB Dynamics (AIM: ABDP) has produced an excellent set of results for the year to August. Revenue grew by 19 percent and operating profit was up 41 percent. The company has benefited from rising R&D spending by the automotive industry and is reaping the rewards of having built some strong relationships with its leading companies.

Falanx looks to benefit from cyber crime

The recent data breach at Talk Talk where thousands of customers had their personal information stolen has had a big negative impact on the company. However it also serves to highlight the opportunities for companies specialising in poviding cyber security.

More News