Kina Petroleum fails to fire

PAPUA New Guinea explorer Kina Petroleum made a flat debut on the Australian Securities Exchange on Monday and its shares have since fallen 10% or A2c to 18c, as of this morning.
Kina Petroleum fails to fire Kina Petroleum fails to fire Kina Petroleum fails to fire Kina Petroleum fails to fire Kina Petroleum fails to fire

Listing at 20c per share in a float to raise $12.5 million, Kina Petroleum is expected to have around 75.78 million fully subscribed shares.

KP managing director Richard Schroder has three decades of oil and gas experience.

Schroder has been involved in the drilling of 11 wells in PNG and Indonesia's next-door province of Papua, with one resulting in a commercial oil field while three others had notable hydrocarbon intersections.

KP's total project acreage covers 21,627sq.km, including a 10% stake in petroleum retention licence 21 in Western Province, which contains two wet gas discoveries.

The underway Elevala-2 well, which has already reported good gas shows, and the looming Ketu-2 well are situated in PRL 21, which is also owned by Horizon (45%) and Talisman (45%).

Just last week KP announced it sold a 5% stake to Talisman in November, reducing its PRL 21 stake to 10%.

The sum involved was not revealed, although KP said 80% of the sales proceeds had been received.

KP also owns three petroleum prospecting licences in the southern Papuan Basin - PPLs 337,338 and 340. In its prospectus, KP said these licences surrounded InterOil's giant Elk-Antelope gas and condensate discovery.

KP's other exploration licence, PPL337, is in the frontier North New Guinea Basin and covers land that has a surface anticline with "numerous gas seeps".

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