IPO – Kina Petroleum (ASX:KPL)
– Broker Firm Allocation
An opportunity to invest in an Oil & Gas Exploration IPO just before the results of their first well
Wealth Focus has secured access to an allocation to the Kina Petroleum IPO. Investors looking to apply for a firm allocation will need to contact us on 1300 55 98 69 by close of business, Wednesday 30th November.
We don’t often market smaller unknown IPOs to investors but our relationship with Kina’s Managing Director has highlighted this as a potential opportunity to our readers.
Overview – Kina Petroleum are an Oil & Gas Exploration company, drilling in Papua New Guinea and have partnered with larger well known companies such Oil Search and Horizon. Unlike most IPOs, Kina has a very short anticipated timescale to the results of their first well (expected end of December). The funds raised are being directed towards their share of the cost of drilling expenses.
We note that Kina’s first well is drilling a previous BP discovery from 1991, and is likely to be more a question of how large a discovery this is. At the time, oil was trading at $18 a barrel and the mixture of oil and gas was considered too labour intensive which led to BP sealing the discovery. Kina has since picked up the rights to this well and are now drilling this in conjunction with Horizon & Talisman (who recently paid over $5 million for a further 5% stake in Kina’s 1st well, PRL 21, valuing Kina’s remaining share at over $15 Million).
Page 15 of the presentation also highlights the drilling rights and a major discovery in by Interoil in PNG. Investors will note that Kina lays claim to the leases over much of the surrounding areas and has already received interest to explore these areas.
Overall, our view is that this is a speculative investment, but with the results of the first well anticipated towards the end of this year, and a free Option with every three shares at the 20c listing price, we feel this has some real potential for high returns.
Call us on 1300 559 869 to secure an allocation.
- Broker firm offer – Our allocation through the broker firm offer means investors are able to secure their allocation more readily than just applying through the general offer.
- Limited Offer – The offer is to raise approximately $12.5 Million with a minimum of $9.0 Million. The shares will be traded on the ASX.
- Short lead time to results of first well –With Kina’s first well currently being drilled, investors can expect a relatively short lead in time to the 1st set of results (anticipated to be at the end of December).
- Minimum investment – $2,000
- Issue Price – 20c per share
- Free option for IPO participants – One attaching option with an exercise price of $0.20 and expiry date of 30 November 2012 will also be issued for every three Shares subscribed for.
Find out more
If you would like further information on Kina Petroleum Share Offer, please click on the links below:
- Fact sheet
- Recent Statement issued by Horizon Oil commencing drilling with Kina
Wealth Focus Pty Ltd
What do we get paid?
Wealth Focus will receive a commission of up to 6% (exc. GST) of the amount invested. This commission is paid by the product issuer and is NOT an additional charge to the investor.