Kea Petroleum PLC (KEA) - Preliminary Results RNS Number : 8669P Kea Petroleum PLC 30 October 2012 For Immediate Release 30 October 2012 Kea Petroleum plc ("Kea" or the "Group") PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MAY 2012 Kea Petroleum plc (AIM:KEA) is pleased to present its Preliminary Results for the year ended 31 May 2012. Operational Highlights · Successful discovery at Puka 1 following drilling and testing which intersected a 40 metre interval of Mt. Messenger reservoir quality sands with a net pay of between 4.5m and 9m with sampling indicating excellent quality light oil with a density of 43.7 degrees API and a relatively low pour point of 15 degrees centigrade · Testing confirmed that Puka is an oil and gas field of commercial dimensions with maximum flow rates of 310 bopd and 1.8 mmcf/d from Puka 1. Kea intends to drill a second well in the coming weeks that will allow for higher flow rates and flexibility with completion and production · As previously announced, Methanex will fund 50% of the cost of drilling and testing at Mauku in return for access to all the gas from a discovery. Methanex do not take a stake in the licence · The directors believe that the Douglas 1 well has implications for a number of the deeper oil and gas plays along the eastern margin of the Taranaki Basin · Farm out discussions proceeding for Mercury, Kea's seven kilometre offshore field which is expected to be drilled in 2014 · Board strengthened with appointment of Richard Parkes as Managing Director to manage the day to day running of the Group. Financial Highlights · £6.7m cash held at 31 May 2012 (2011 : £12.5m) · In September 2012 £3.5m of warrants were exercised · Loss before tax: £3.03m (2011 : £4.09m) · Loss per share: 0.60p (2011 : 0.82p) Strategy · Kea intends to complete a 50 km^2 3D seismic survey over Puka and the surrounding area following recent geological analysis suggesting the strong possibility of a greater Puka field · Kea's ambition is to achieve production of 2,000 bopd from the Puka field which is located nearby to the required infrastructure, pipelines, roads and sea oil terminal · Drilling of Mauku 1 is expected to commence in January 2013 · Further testing of Douglas 1 well delayed until 2013 as resources focused on Puka · Mercury is expected to be drilled in 2014 following a 3D seismic study next year · Kea is planning to carry out a further seismic programme jointly funded with Methanex at its Angus site located on PEP 51155 Chairman, Ian Gowrie-Smith said: "The discovery at Puka has been a landmark achievement for Kea and a vital step in our ambition to become a major player in oil and gas production in the Taranaki region. Over the next 12 months, Kea will concentrate on moving from a solely exploration led model to a balance of production and exploration. The coming months represent immediate exciting opportunities for the Company with the development of the Puka field and the concurrent drilling of Mauku 1." For further information please contact: Kea Petroleum plc Tel: +44 (0)20 7340 9970 David Lees, Executive Director RBC Capital Markets (NOMAD) Tel: +44 (0)20 7653 4000 Stephen Foss Daniel Conti WH Ireland Limited Tel: +44 (0)20 7220 1666 James Joyce Buchanan Tel: +44 (0)20 7466 5000 Tim Anderson Sophie Cowles CHAIRMAN'S STATEMENT Kea Petroleum Plc's ("Kea", the "Company" or the "Group") recent announcement that the Puka discovery was commercial in size and nature is a landmark for the Company. Prospectively, shareholders can now look forward to a healthy cash flow as well as an ongoing exploration program. The next 12 months will be concentrated on moving from solely an exploration led model to a balance of production and exploration. The appraisal and development of the Puka field and the concurrent drilling of Mauku, which per management estimates, potentially un-risked prospective resources of 485Bcf of gas and 28Mmbbls of condensates during the coming months represent an exciting opportunity in the immediate future. Puka On 10 April 2012 Kea announced that it had made a discovery and subsequent testing, in September 2012, confirmed that Puka is an oil and gas field of commercial dimensions with maximum flow rates of 310 BOPD and 1.8 Mmcf/d and no confining boundaries. Puka 1 was drilled with a small rig primarily designed for exploration but not ideal for production or establishing reliable long term production data. Plans are well advanced for extending the Puka site and the existing Wingrove production facilities are in the process of being moved to the Puka production site in order to commence production and oil sales. Installation work is expected to be undertaken during the drilling of Puka-2. The Puka 2 well, is scheduled to be drilled in the coming weeks, and will be drilled by a larger capacity rig with a wider diameter production well bore that will allow for higher flow rates and flexibility with completion and production. Kea intends commencing a 50 square kilometre three dimensional (3D) seismic survey over Puka and the surrounding area. Recent geological analysis incorporating data learned from drilling Puka 1, suggests the possibility of a greater Puka field. The drilling of Puka 2 and the 3D seismic will enable the Company to assess if this analysis is correct. Kea's ambition is to achieve production of 2,000 BOPD from the Puka field which is located nearby to the required infrastructure, pipelines, roads and sea oil terminal. Mauku Drilling Mauku, which has an estimated cost of US$15million (before testing), is now expected to commence in early January 2013, if not earlier, having suffered delays through an extended consent process, extreme weather and challenging access. The NRG rig has been engaged to drill following the drilling of Puka 2. As previously announced Kea has a financial partnering arrangement with MethanexNew Zealand Limited (a subsidiary of Methanex Corporation of Canada) ("Methanex") providing 50% of the cost of drilling and testing Mauku in return for access to all the gas from a discovery. Methanex does not take a stake in the licence. Additionally Kea has is in advanced negotiations to farm out a further interest in Mauku. Douglas 1 Drilling of Douglas 1, on permit 51153, was completed in May 2012 after reaching a depth of 3,000metreswhich intersected the target Tikorangi Limestone that hosts oil in the adjoining Waihapa oil field. As the well encountered extensive open fractures together with hydrocarbon shows, Kea moved directly to testing. However, testing was inconclusive due to an inability to close off the lower formation water from the more prospective higher hydrocarbon shows. The well is suspended to see if the pressures can equilibrate and further testing is not expected to be resumed until 2013 with financial, managerial and rigs resources being focussed on the Puka development. Despite the lack of clarity from testing, the directors believe the well has implications for a number of the deeper oil and gas plays on the Company's existing permits along the eastern margin of the Taranaki Basin. Mercury The Board believe that the Mercury prospect (located on PEP 52333) is as attractive a prospect as Mauku with in house estimates of up to 159Mmbbls. It is seven kilometres offshore and is expected to be drilled in 2014 following a 3D seismic study next year. The Company is in discussions to farm down its interest in this prospect in order preserve funds for its onshore activities. Angus Following on from the success at Puka, the decision by the board was made not to drill Angus (located on PEP 51155) and instead carry out additional seismic studies. Kea is planning to carry out a further seismic program jointly funded with Methanex. Relinquishments In November 2011, following an internal review of the prospects within Kea's New Zealand acreage the Company relinquished two permit areas PEP52200 and PEP51339 as well as a 10% share in PEP38524 in order to focus more fully on the drilling of Mauku, Puka and Douglas and the longer term appraisal of Mercury together with other potential prospects on our remaining four permits. Further in May 2012 the Company signed a deed of termination agreement to dispose of its interests and obligations in its two Australian licences. The interest in deepening the Hoadleys well did not materialise into a more concrete offer and the results from the original drill did not encourage further expenditure on the prospect. All of the costs associated with these licences were written off during the financial year ended 31 May 2012. Board and Management There have been a number of management changes during the year. The Company appointed Richard Parkes as Managing Director in July 2012. Richard was subsequently appointed to the board in October 2012. We are delighted with this appointment as we believe that his experience in the oil and gas industry will help in the transition of Kea from explorer to producer. Whilst I carried out a substantial work load during this period of change, the proposed change of my appointment to Executive Chairman from Non-Executive Director proved unnecessary following Richards' appointment. During the last financial year, our Finance Director, Peter Wright, relocated to New Zealand from the UK and this move has brought increased financial controls to the operations and alongside Richard we believe that the management and technical team we have assembled in New Zealand is strong and with the capability to drive forward the board's vision for the Group. John Dennehy's move to a non-executive role ensures that the Company continues to have access to his valuable contributions both within New Zealand and at board level. John Conolly has decided not to stand again for re-election and we thank him for his help during the Company's formative years. Funding In September 2012 £3.5million warrants were exercised and together with the decision by Methanex to fund 50% of the cost of drilling and initial testing of Mauku, the directors believe Kea now has a greater flexibility in planning and executing appraisal and development programmes to enhance shareholder value. Conclusion Finally I would like to thank our shareholders, advisors and particularly our staff for their meaningful support and contribution during the year. Ian Gowrie-Smith Chairman 30 October2012 Year ended 31 May Year ended 31 May 2012 2011 £'000 £'000 Notes Revenue 37 - Cost of sales - - Gross profit 37 - Administration expenses (2,604) (1,994) Operating loss before exploration costs (2,567) (1,994) written off Exploration costs written off (1,316) (2,418) Operating Loss (3,883) (4,412) Finance Income 4 105 314 Foreign Exchange gains / (losses) 742 - Loss before taxation 2 (3,036) (4,098) Taxation 5 - (79) Loss for the year (3,036) (4,177) Other comprehensive income: Exchange differences on translating foreign (608) 570 operation Total comprehensive loss for the year (3,644) (3,607) Loss per share Basic and diluted (pence per share) 6 (0.60)p (0.82)p The loss for the year and total comprehensive loss for the year are 100% attributable to equity shareholders of the parent undertaking. 31 May 31 May 2012 2011 £'000 £'000 Notes Current Assets Cash and cash equivalents 9 6,692 12,547 Trade and other receivables 10 743 2,394 7,435 14,941 Non-Current Assets Property, plant &equipment 8 700 760 Oil &gas exploration assets 7 10,108 4,022 10,808 4,782 Total Assets 18,243 19,723 Current Liabilities Trade and other payables 11 2,572 1,477 Total liabilities 2,572 1,477 Shareholders' Equity Issued capital 12 5,094 5,094 Share premium 12 16,787 16,787 Merger reserve 13 125 125 Share option reserve 14 2,069 1,000 Translation reserve (38) 570 Retained earnings (8,366) (5,330) Total equity 15,671 18,246 Total Equity and Liabilities 18,243 19,723 The financial statements were approved by the Board of Directors on30 October2012 P. Wright Director Share Share Merger Share Translation Retained Total capital premium Reserve option reserve earnings equity reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 At 01 June 2010 5,037 16,390 125 187 157 (1,153) 20,743 Issue of shares 57 397 - - - - 454 Equity settled - - - 813 - - 813 share options Transactions with owners 57 397 - 813 - - 1,267 Loss for the year - - - - - (4,177) (4,177) Other comprehensive income: Exchange - - - - 413 - 413 differences on translation of foreign operations Total comprehensive loss for the year - - - - 413 (4,177) (3,764) At 31 May 2011 5,094 16,787 125 1,000 570 (5,330) 18,246 Issue of shares - - - - - - - Equity settled - - - 1,069 - - 1,069 share options Transactions with owners - - - 1,069 - - 1,069 Loss for the - - - - - (3,036) (3,036) period Other comprehensive income: Exchange - - - - (608) - (608) differences on translation of foreign operations Total comprehensive loss for the year - - - - (608) (3,036) (3,644) At 31 May 2012 5,094 16,787 125 2,069 (38) (8,366) 15,671 Year ended 31 May Year ended 31 May 2012 2011 £'000 £'000 Net cash outflow from operating activities 847 (6,389) Cash flows from investing activities Interest received 105 314 Expenditure on oil and gas exploration assets (6,230) (1,585) Purchase of property, plant and equipment (49) (755) Net cash used in investing activities (6,174) (2,026) Cash flows from financing activities Proceeds from share issues - 454 Net cash generated from financing activities - 454 Net decrease in cash and cash equivalents (5,327) (7,961) Cash and cash equivalents at beginning of year 12,547 20,095 Foreign exchange differences - net 528 413 Cash and cash equivalents at balance sheet date 6,692 12,547 Reconciliation of cash flows from operating activities with loss for the year Loss for the year (3,036) (4,177) Movements in Working Capital Trade and other receivables 1,651 (924) Trade and other payables 1,095 (1,800) Depreciation 109 13 Derecognition unsuccessful expenditure 64 - Interest received (105) (314) Share option expense 1,069 813 Net cash outflowfrom operating activities 847 (6,389) The financial information set out in this preliminary announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 for the year ended 31 May 2012 but is derived from those accounts. The financial statements for 2012 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors have reported on the 2012 accounts and have issued an unqualified opinion. NOTES TO THE FINANCIAL STATEMENTS For The Year Ended 31 May 2012 1. Revenue and segmental reporting In the opinion of the Directors the Group's single operating segment is the exploration for hydrocarbons, comprising oil and gas. An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses and whose results are regularly reviewed by the Board of Directors. The Board of Directors reviews operating results by reference to the core principle of geographic location. The Group currently has oil and gas exploration in one market, New Zealand, and it has a head office and associated corporate expenses in the UK. Revenue of £37,625 has been earned through the sale of oil to Shell Todd Oil Services Limited, in New Zealand, during the period. The following table provides a breakdown of the Group's capital expenditure based on the area of operation: 2012 2011 £'000 £'000 New Zealand 6,275 2,337 The following table provides a breakdown of the Groups total segment non current assets based on the area of operation: 2012 2011 £'000 £'000 New Zealand 10,802 4,777 United Kingdom 6 5 10,808 4,782 2. Loss before taxation 2012 2011 Loss before taxation has been arrived at after charging / £'000 £'000 (crediting): Foreign exchange differences (742) (12) Depreciation of property, plant and equipment 109 13 Employee benefits expense: Employee costs (Note 3) 881 551 Operating leases rentals: Land and buildings 133 89 Audit and non-audit services: Fees payable to the Company's auditor for the audit of the Group 32 30 accounts Fees payable to the Company's auditor and its associates for other services: The audit of the Company's subsidiaries, pursuant to legislation 15 10 Tax services 10 10 Revenue from sub-letting part of Group head office in London (74) (95) 3. Employee numbers and costs 2012 2011 £'000 £'000 Employee costs (including directors): Wages and salaries 573 382 Social security costs 274 142 Pension costs - defined contribution plans 34 27 881 551 The average number of employees (including directors) during the year wasas follows: Management 6 7 Administration 4 2 Exploration and Mining 7 3 17 12 £'000 £'000 Remuneration of key management personnel: Emoluments 441 330 Pension costs 26 22 467 352 Included in the figure of £467,000 are costs of £50,000 relating to time spent by the CEO and other employees that have been capitalised against specific projects. The total directors' emoluments for the year were £366,000. In addition directors' total pension contributions for the year were £22,000. The emoluments of the highest paid director were £121,000. 4. Finance income 2012 2011 £'000 £'000 Interest income 105 314 5. Taxation There is no income tax expense due to losses incurred in the year. The tax assessed for the year differs from the standard rate of corporation tax as applied in the respective trading domains where the Group operates. 2012 2011 £'000 £'000 Loss for the year before tax (3,036) (4,098) Loss for year multiplied by the standard rate of corporation tax applicable in the UK, 25.67% (2011:28%) (1,134) (779) Effects of: Expenses not deductible for tax purposes 285 130 Differences in rates of taxation - (21) Unprovided deferred tax adjustment for prior year - 80 Unrelieved tax losses and other deductions raised in the year (59) 1,024 Tax losses for future utilisation 533 - Tax (charge) / credit for the year - 79 2012 2011 Deferred tax £'000 £'000 Deferred tax assets: Short term timing differences (24) (14) Tax losses available for offset against future taxable profits (2,375) (1,112) Deferred tax liabilities: Timing differences on capitalised exploration expenditure 2,399 1,126 Net deferred tax asset recognised - - The Group has a deferred tax asset of £1,444,013 (2011: £3,464,000)which is unrecognised as the likelihood of sufficient future taxable profits being generated within the Group does not yet meet the definition of "probable". 6. Loss per share Year ended 31 May Year ended 31 May 2012 2011 £'000 Loss for the year attributable to equity (3,036) (4,177) shareholders Pence per share Basic and diluted loss per share (0.60)p (0.82)p Number of shares Issued ordinary shares at start of the year 509,355,000 503,690,000 Ordinary shares issued in the year - 5,665,000 Issued ordinary shares at end of the year 509,355,000 509,355,000 Weighted average number of shares in issue 509,355,000 508,011,014 for the year. The diluted loss per share does not differ from the basic loss per share as the exercise of share options would have the effect of reducing the loss per share and is therefore not dilutive. 7. Oil and gas exploration assets Exploration and evaluation expenses capitalised £'000 Cost Net book value at 31 May 2010 2,437 Additions 2011 1,585 Net book value At 31 May 2011 4,022 Additions 2012 6,230 Exchange Differences on translation (80) Impairment of unsuccessful expenditure (64) Net book value at 31 May 2012 10,108 All of the Group's operating expenses and other assets and liabilities are derived from the exploration and evaluation of hydrocarbon resources, unless stated otherwise in these financial statements. 8. Property, plant and equipment Office & computer equipment Cost £'000 Opening Balance 22 Additions 755 At 31 May 2011 777 Additions 49 At 31 May 2012 826 Depreciation Opening Balance 4 Charge for the year 13 At 31 May 2011 17 Charge for the year 109 At 31 May 2012 126 Net Book Value at 31 May 2011 760 Net Book Value at 31 May 2012 700 9. Cash and cash equivalents 2012 2011 £'000 £'000 Cash at bank and in hand 6,692 12,547 10. Trade and other receivables 2012 2011 £'000 £'000 Other receivables 122 590 Value added taxes 410 30 Prepayments 211 1,774 743 2,394 There were no financial assets overdue for receipt. 11. Trade and other payables 2012 2011 £'000 £'000 Trade payables 2,304 465 Social security and other taxes 60 89 Accrued expenses and other creditors 208 923 2,572 1,477 12. Share capital Shares Nominal Premium Total Value (1.0p) net of costs £'000 £'000 £'000 Opening Balance 31 May 2010 503,690,000 5,037 16,390 21,427 Warrants exercised 5,665,000 57 397 454 509,355,000 5,094 16,787 21,881 31 May 2011 and 31 May 2012 The market price of the ordinary shares at 31 May 2012was 9.65p and the range during the year was 4.125p to 12.75p. 13. Merger reserve £'000 At 31 May 2011 and 31 May 2012 125 In October 2009, the Company acquired the entire issued share capital of the recently incorporated KPHL by way of a share for share exchange with the then shareholders of KPHL. The difference between the nominal value of the shares issued by Kea Petroleum to the shareholders of KPHL and the nominal value of the shares of KPHL taken in exchange has been credited to a merger reserve on consolidation. 14.Share based payments The Group has an unapproved share option plan for the benefit of employees.Details of the number of share options and the weighted average exercise price (WAEP) outstanding during the period are as follows: 2012 WAEP 2011 WAEP Number Pence Number pence Outstanding at the beginning of the year 42,000,000 9.14 30,000,000 8.00 Granted during the year - - 12,000,000 12.00 Forfeited during the year (4,000,000) - - - Outstanding at the balance sheet date 38,000,000 8.84 42,000,000 9.14 Exercisable at the balance sheet date - - - - The fair value of options granted has been arrived at using a Binomial model. The assumptions inherent in the use of this model are as follows: § The option life is assumed to be at the end of the allowed period. § There are no vesting conditions. § No variables change during the life of the option (e.g. dividend yield). § Expected volatility was determined by calculating the weighted average share price movement of 4 comparable companies. Expected life was based on the contractual life of the options, adjusted, based on management's best estimate, for the effects of exercise restrictions and behavioural considerations. Date of Vesting Life Exercise Risk-free Share Volatility Fair Number grant period in price rate price of share value outstanding (Yrs) years (pence) at price (pence) from grant grant (pence) date 15/02/10 Min 3 10 8.0 2.95% 9.15 85% 6.49 30,000,000 years 07/01/11 Min 3 10 12.0 2.44% 14.5 85% 10.05 12,000,000 years The Group recognised total expenses of£1,069,514 (2011:£813,549) related to equity-settled share based payment transactions during the year. A corresponding credit has been made to the share option reserve. Further details of share based payments are set out in the Remuneration Report. 15. Financial instruments and risk management Risk management The Group manages its capital to ensure that entities within the Group will be able to continue as a going concern whilst maximising the return to stakeholders through the effective management of liquid resources raised through share issues. The principal risks faced by the Group resulting from financial instruments are liquidity risk, foreign currency risk and, to a certain extent, interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below. Capital risk management The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other members. The Group will also seek to minimise the cost of capital and attempt to optimise the capital structure. Currently no dividends are paid to shareholders and capital for further development of the Group's products is achieved by share issues. The Group does not carry significant debt. Categories of financial instrument 2012 2011 £'000 £'000 Loans and receivables - Cash and cash equivalents 6,692 12,547 - Trade receivables - - 6,692 12,547 Financial liabilities at amortised cost - Payables 2,304 1,476 There is no material difference between the fair values and the book values of these financial instruments. All financial liabilities are due within one year. Foreign currency risk The cash balances carried within the Group comprise the following foreign currency holdings: 2012 2011 £'000 £'000 NZ dollars 1,994 4,670 US Dollars 2,371 3,182 AUS Dollars 180 1,305 4,545 9,157 The Group operates within the UK and New Zealand. All transactions are denominated in Sterling, NZ Dollars or US dollars. As such the Company is exposed to transaction foreign exchange risk. The mix of currencies and terms of trade are such that the directors believe that the Company's exposure is minimal and consequently they do not specifically seek to hedge that exposure. A significant portion of the Group's funds are in Sterling with only sufficient funds held overseas to meet local costs. Funds are periodically transferred overseas to meet local costs when required. The table below demonstrates the sensitivity of the Group's consolidated loss before tax to reasonably possible changes in the value of the US dollar and the NZ Dollar with respect to Sterling, all other variables held constant. The sensitivity analysis includes only the US dollar and NZ Dollar because the effect of other currencies is not significant. The sensitivities reflect only those changes in consolidated loss before tax that arise from translation of the value of US dollar and NZ dollars denominated financial assets and liabilities. Effect on loss Change in value Effect on loss before tax Change in value before tax and of USD vs. £ and equity of NZD vs. £ equity % £'000 % £'000 2012 10 237 15 299 2011 15 477 15 700 Interest rate risk The Group finances its operations through equity fundraising and therefore does not carry significant borrowings. Interest rate risk is therefore considered to be immaterial. The Group's cash balances and short term deposits are held at floating interest rates based on LIBOR and are reviewed to ensure maximum benefit is obtained from these resources. Risk is additionally reduced by ensuring two or more banks are used for deposits. Liquidity risk The Group is dependent on equity fundraising through private placing which the directors regard as the most cost effective method of fundraising. The directors monitor cash flow on a daily basis and at monthly board meetings in the context of their expectations for the business to ensure sufficient liquidity is available to meet foreseeable needs. 16. Capital commitments As at 31 May 2012 the Group had no capital expenditure commitments. The terms of the petroleum exploration permits which the Group holds require it to carry out certain exploration activities within specified time frames. The actual costs of these activities are dependent on a number of factors including the scope of the work and whether farm out or similar arrangements are entered into with other parties. Estimated commitments for the minimum exploration work program obligations are as follows: Within 1 year · PEP 52333 Acquire 100 square km marine seismic over the Mercury prospect - £1,225,000 · PEP 381204 Drill Mauku 1 exploration well - £3,900,000 · PEP 51155 Onshore Taranaki; Acquire seismic to value - £730,000 Later than 1 year but not later than 5 years · PEP 51155 Onshore Taranaki; Drill one additional well and collect geochemistry and gravity samples - £875,000 17. Subsidiary companies consolidated in these accounts and associates Country of % interest in ordinary shares at 31 Principal incorporation May 2012 activity Kea Petroleum New Zealand 100 Oil and gas Holdings Limited exploration Kea Exploration New Zealand 100 Oil and gas Limited exploration Kea Oil and Gas New Zealand 100 Oil and gas Limited exploration Kea Australia Australia 100 Oil and gas exploration Kea Oil and Gas New Zealand 100 Dormant (Kahili) Limited 18. Operating lease commitments At the balance sheet date, non-cancellable outstanding operating lease rentals are payable as follows: 2012 2011 £'000 £'000 Land and buildings: One year 117 117 Two to five years 117 234 234 351 The lease is on the property at 5-8 The Sanctuary in London and rental and service charge are payable in advance on a quarterly basis. The lease expires in July 2016, with the option of a break clause in July 2014. 19. Related party transactions The New Zealand head office previously operated from premises in Wellington that were leased from a trust in whom DJ Bennett is a trustee and a beneficiary. The lease terms and conditions were at arm's length. During the period Ventutec Limited, a company in which DJ Lees is a director, charged an amount of £684 (2011: £1,057) for web based services. The balance outstanding at year end was nil. 20. Events after the balance sheet date In August 2012 the Company flow tested the Puka-1 well achieving maximum flow rates of 310 bopd. In August 2012 officers and staff members exercised 480,000 warrants at 8p each. In September 2012 a total of 38,232,500 warrants of 8p were exercised. In October 2012 the Company appointed Richard Parkes as a Director. In October 2012 Dr John Conolly decided not to stand for re-election as a Director. This information is provided by RNS The company news service from the London Stock Exchange END FR BXBDGBSXBGDG -0- Oct/30/2012 13:46 GMT
Kea Petroleum PLC KEA Preliminary Results
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