KEA raises £6m allowing it to float on London’s AIM

OIL and gas exploration business, KEA Petroleum, will begin trading on London’s AIM Market next Monday after successfully raising £6m from institutional and private investors.

KEA’s market capitalisation, on admission, will be approximately £36.8m.

The company owns three petroleum exploration permits in the Taranaki and Northland Basins of New Zealand and plans to use the net proceeds and its existing cash resources to start its drilling programme in March or April.

David Lees, executive director, told City A.M. that the flotation had come at the right time, saying the current gas shortage in New Zealand demonstrated the need for its products.

Methanex, the world’s largest supplier of methanol, has a deal with KEA, to fund the drilling of one well in return for gas purchase rights.

Chairman, Ian Gowrie-Smith, previously floated Rift Oil Plc.