NZ-Focused Kea Petroleum Launches Review of its Strategic Options

Kea Petroleum plc, the oil and gas company focused on New Zealand, announced Monday that it is launching a review of the strategic options open to the Company with the intention of considering all opportunities for maximizing value for shareholders. Accordingly, the Company is undertaking a careful evaluation of its business plan, operational assets, development strategy, market valuation of assets and capital structure.


On Jan. 14, the Company announced that, as a result of the current oil price and a mechanical problem, it had shut in production at its Puka site. It also announced that it continues in discussions with potential farm-in partners for its Mercury, Mauku and Shannon prospects.

At the time of the publication of the Company's final results the Directors stated the Company was in discussions to secure additional funding to cover an expected funding shortfall in 2015. To date the Company has not entered into any funding agreements but discussions continue.

As a consequence of a combination of these factors the Board has decided to commence a strategic review. In the meantime the Company has taken a number of cost cutting measures to preserve its working capital which remains tight.

Strategic Review

The review of strategic options may include a corporate transaction such as a merger with, acquisition of or subscription for the Company's securities by a third party, a sale of the business or a farm down or disposal of assets. Discussions in relation to a merger with a third party or a sale of the Company will take place within the context of a "formal sale process" in accordance with Note 2 on Rule 2.6 of the City Code on Takeovers and Mergers (the Code), such that the Board of Kea is able to have discussions with third parties interested in such a transaction on a confidential basis to the extent permitted by the Code.

Any interested party will be required to enter into a non-disclosure agreement with the Company on reasonable terms satisfactory to the Board and on the same terms, in all material respects, as the other interested parties before being permitted to participate in the process. Following execution of an agreed non-disclosure agreement, the Company intends to provide interested parties with equality of information on the Company. Following receipt of the materials, interested parties shall be invited to submit proposals to the Company.

The Board reserves the right to alter any aspect of the process as outlined above or to terminate it at any time and will make further announcements as appropriate. The Board reserves the right to reject any approach or terminate discussions with any interested party or participant at any time.


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