Kea Petroleum to become 'investing company' after selling all its assets

Oil and gas group Kea Petroleum has reached an agreement to sell its 70% interest in PEP51153, the licence which includes the Puka wells and the Shannon prospect in New Zealand, to Caliera Fund for £222,550.

In a statement released on Friday, the London-listed group said the transaction would represent the disposal of 'substantially the whole of the company's assets', and will result in Kea being classified as an 'investing company' under the AIM Rules for Companies.

The group added it has also agreed to dispose of its interest in PEP381204, the licence which includes the Mauku prospect, adding the proceeds from both sales will be used to pay the company's creditors and as working capitals.

However, Kea indicated that the funds will not be sufficient to 'meet the ongoing costs of keeping the company alive or delivering on its proposed investment policy.'

As a result, the company said it was aiming to raise, through subscriptions by existing substantial shareholders and others, up to £1m to cover ongoing costs of operations.

Last month, the group suspended trading in its shares after failing to secure bids totalling £3m via the PrimaryBid.com crowdfunding platform.