Perth, June 21, 2010 (ABN Newswire) - Kairiki Energy Limited (ASX:KIK) (PINK:KAIRF) is pleased to announce that it has received firm commitments for a capital raising of A$6,538,000 by the placement of 46,700,000 ordinary fully paid shares (Shares) at an issue price of 14 cents per Share. The placement has been arranged by Southern Cross Equities Limited to professional and sophisticated investors pursuant to section 708 of the Corporations Act.
Funds raised from this issue will be used for development of our Tindalo oil project in the Philippines and for working capital purposes.
An Appendix 3B in relation to the issue of Shares will be lodged on final completion of the placement.
Kairiki Energy Limited (ASX:KIK)(PINK:KAIRF) is an Australian Based junior international oil and gas exploration and production company focussed on the Philippines. Kairiki holds a 30.1% interest in Service Contract 54A and a 40% interest in Service Contract 54B.
SC 54A measures 862 km2 and contains the Tindalo, Yakal, Nido 1X1 and Signal Head oil discoveries as well as a substantial portfolio of similar low-risk reefal prospects. In December 2009, Kairiki announced that the SC 54A Joint Venture had approved the development of the Tindalo field. The Tindalo development utilises a jack-up rig and a dynamically positioned storage vessel. Following a short project execution period, the Tindalo development tested oil at 18,689 bbls/d at the end of May 2010. Since that time, unexpected early water ingress to the well has resulted in the SC 54A Joint Venture preparing for a well re-entry and remediation programme to reduce or eliminate the water production. Based on a successful development at Tindalo a number of follow-up developments may be considered in SC 54A.
SC 54B measures 3184 km2 and contains the Gindara prospect which has a mean unrisked oil in place volume estimated by the Operator, of 634 million barrels. The Gindara prospect is a very large simple four-way closure at the Top Nido Limestone reservoir objective with an areal extent of 28 km2, a vertical closure of over 300m and is well located to receive hydrocarbon charge from the Palawan Trough. Kairiki is seeking to farm down its interest in SC 54B to accelerate drilling of the Gindara prospect.
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