SC54 – Inboard Development Area
Perth, June 23, 2009 AEST (ABN Newswire) - Kairiki Energy Limited (ASX:KIK)(PINK:KAIRF) is pleased to advise that it has received firm commitments for a placement of 57.8m shares at 14 cents for total gross proceeds of A$8.1m. The issue was strongly oversubscribed by institutional and sophisticated investor clients of Southern Cross Equities. The placement is the maximum number that can be placed under Kairiki's available 15% capacity under the ASX listing Rules and is expected to be completed before 30 June 2009.
These funds will provide Kairiki with the financial capability to pursue the development of its Tindalo oil discovery consistent with the Service Contract 54 (SC54) operator's plans announced in May 2009. The joint venture's plans are to fast track Tindalo with First Oil targeted for early 2010 based on a final investment decision to be taken by September 2009.
The joint venture intends to utilise a jack-up rig to complete the already drilled Tindalo-1 well and produce oil into a floating storage offtake vessel (FSO). It is expected that the services and associated hardware will be available in the current market at costs significantly discounted to those experienced just 12 months ago.
With the combination of the anticipated highly productive pinnacle reef reservoir and the excellent fiscal terms in the Philippines, the initial Tindalo development is expected to fund and support the subsequent development of the remaining inboard area of SC54, which includes 3 further discoveries and as many as 20 follow up low-risk drilling targets.
We look forward to updating our investors on the progress of SC 54 as we move towards First Oil.
Contact
Laurie Brown
Managing Director
Kairiki Energy Limited
Tel: +61-8-9388-6711
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