Kea Petroleum (LON:KEA) presented its maiden full-year report, highlighting its balance sheet of over £20 million and the anticipated start of test production at first oil discovery this calendar year 2010.
Kea said that the balance sheet put it in a well funded position to continue its planned exploration and development drilling programmes, in association with its joint venture and alliance partners such as Methanex.
“2011 promises to be an exciting year as Kea's planned drilling programme continues to provide ample opportunities to bring success to the company through further oil and gas discoveries,” said chairman of Kea Petroleum Ian Gowrie-Smith.
Discussions of an extension of the gas exploration agreement with a subsidiary of Methanex (NASDAQ:MEOH, TSX:MX) are currently ongoing.
Kea Petroleum has maintained an active exploration programme in New Zealand since listing on AIM in early 2010, which included the granting of three new permit areas.
The first well, Wingrove-2, resulted in an oil discovery in April, in Kea's wholly owned onshore Taranaki permit 51153, where test production is set to start before the end of 2010.
Kea will embark on another drilling campaign around the end of the year.
A seismic acquisition programme completed in the Taranaki acreage this year provided the company with an inventory of prospects to target during future drilling.
A programme of up to six holes is due to start there in Q1 2011.