30 October 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

Sunset in Marrakesh

Tangiers looking dry 24/10/2014

Moroccan oil explorer Tangiers Petroleum (AIM:TPET) is to divest itself of its biggest block in the country.

Tags: Oil and gas

John Lewis busy in the kitchen 24/10/2014

Kitchens and furniture specialist John Lewis of Hungerford (AIM:JLH) unveiled a trading update for the year to August. 

Tags: British businesses

Active starts JV in Canada 24/10/2014

Biomass energy outfit Active Energy Group (AIM:AEG) has signed a joint venture deal in Canada to develop forestry.

Tags: Cleantech

Atlantis wave hits £5m 24/10/2014

Tidal power specialist Atlantis Resources (AIM:ARL) has raised £5 million via a placing.

Tags: Cleantech, Fundraising

Baron still busy in Peru 24/10/2014

Peruvian explorer Baron Oil (AIM:BOIL) remains busy in Peru.

Tags: Latin America, Oil

Magnolia keeps on drilling 17/10/2014

US-focused oil play Magnolia Petroleum (AIM:MAGP) has provided an update on its assets.

Tags: Oil and gas

More News