Kea Petroleum Disposes Off New Zealand Assets
Kea Petroleum has announced the disposal of assets and new investment policy and a share reorganisation.
The company has conditionally agreed to sell its 70 percent interest in PEP51153, the licence which includes the Puka wells and the Shannon prospect, to Caliera Fund Limited, a privately owned New Zealand company, for NZ$500,000 (approx. £222,550).
“That disposal, if consummated, represents a disposal of substantially the whole of the Company's assets, and will result in the company being classified as an "investing company" under the AIM Rules for Companies, following an investment policy which must be approved by shareholders,” Kea Petroleum said.
The company has also entered a conditional heads of terms, subject to contract, to dispose of our interest in PEP381204, the licence which includes the Mauku prospect.
The net proceeds of the disposals after costs will be applied in settlement of the Group's current creditors, and as working capital, but will not be sufficient to meet the ongoing costs of keeping the company alive or delivering on its proposed investment policy.
Accordingly Kea will be seeking to raise, through subscriptions by existing substantial shareholders (including directors and associate parties) and others, up to £1 million to cover ongoing costs of operations pending a new transaction constituting a reverse take-over which would be put to shareholders for approval in due course or otherwise implement its investing policy.
“To facilitate this fund raising we believe it is necessary to recognise the reduced value of the company and the share price of the company's shares immediately prior to suspension being below the current par value by reducing the par value of the ordinary shares to 0.1p per share from the existing figure of 1.0p per share,” Kea said.
The company intends, dependent on the successful conclusion of the share reorganisation, and providing there is sufficient working capital from raising of further new funds, to seek to lift the suspension of it New Ordinary Shares to trading on AIM.