Junior energy firm Kea Petroleum revealed Tuesday that it has failed to secure funding to drill a test well at New Zealand’s Shannon Prospect.
The company was seeking funds of $4.5 million to drill the Shannon-1 well, which lies in the onshore zone of the Taranaki Basin, and Kea’s directors were keen to begin the project during the third quarter of 2015. As a result of not raising sufficient funds, the company has requested a suspension of its shares to trading on AIM pending clarification on its financial position.
The Shannon Prospect contains an estimated 9.6 million barrels of gross un-risked mean prospective resources and is located directly beneath Kea's Puka production station, which is part of the PEP51153 license area that Kea has already invested $32.8 million in over last five years.
Kea is currently negotiating with parties on the potential farm-in of its assets. Further announcements are expected to be made in due course.
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