Oil & gas explorer Kea Petroleum is close to completing a deal to fund drilling in New Zealand.

Kea said it expected to complete the farm-out of an interest in an asset known as PEP51153, which includes its Puka discovery in the Taranaki Basin on New Zealand's North Island, in the first quarter of this year.

The deal would mean Kea's partner in the project would fully fund an appraisal of Puka involving one firm well and up to three more wells.

Kea also reported reduced production on its Puka 2 operation due to technical problems, but said pressure build-up during a shutdown had confirmed Puka 2's production potential and repairs should allow production to re-start in March.

Shares rose 7.3% to 1.1p at 09:44 in London.

PW

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