Kea Petroleum announced Friday that it plans to drill two further wells near its successful Puka-1 onshore well in the Taranaki Basin, New Zealand, after raising $11.3 million in a placing of its shares with investors.
Kea added that it will also complete around 19 square miles of 3D seismic acquisition over the area, which it hopes will help it locate further appraisal and development wells at Puka in order to increase production.
"The additional working capital provides Kea with the resources to rapidly expand output," Kea Chairman Ian Gowrie-Smith said in a statement.
Kea reported in August that its Puka-1 well had been successfully tested, flowing oil at up to 290 barrels per day and gas at up to 2.2 million cubic feet per day. Since then, the maximum flow rate of oil achieved at the well has been 310 barrels per day.
While many oil firms continue to explore the Taranaki Basin, New Zealand's only producing basin so far, the country's government is keen to see at least one of New Zealand's other nine basins develop in a similar way. In the summer, New Zealand's Ministry of Business, Innovation and Employment argued that such a development would mean another $1.5 billion of exports for the country and a further 5,500 jobs.
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