KPL lists on POMSoX, ASX

By YEHIURA HRIEHWAZI
THE inaugural listing of Kina Petroleum Ltd (KPL) on the Port Moresby Stock Exchange (POMSoX) was held yesterday and listed simultaneously on the Australian Stock Exchange (ASX).
Immediately, there was an bid for 15,000 shares at 43 toea each, but the asking price at listing was 47 toea, thus no trade yesterday.
With KPL’s listing, total capitalisation of POMSoX as of yesterday was K106 billion.
KPL listed a total of 75,778,575 ordinary shares for trading at the price of 47 toea per share.
It has placed on offer 20,510,155 shares as options – three shares for one free  – exercisable at 47 toea on Nov 30, 2012.
KPL was expected to raise A$12.5 million to help with its cost of exploration in the Western and Gulf provinces and with its operating costs.
A statement released yesterday said KPL concluded an initial public offer which was jointly staged in PNG and Australia to raise funds for its oil and gas exploration projects in PNG.
“KPL is a Papua New Guinean oil and gas exploration company in PNG.
“The company was officially admitted to POMSoX official list in the general admission category. KPL was also admitted to the official list of the Australian Securities Exchange (ASX) today,” it said.
“KPL listed 75,778,575 ordinary shares and 20,510,155 options, which will trade under the code ‘KPL’ for its ordinary shares and ‘KPLO’ for its options. 
The company had issued ordinary shares at
A$0.20 per ordinary share
or kina equivalent of K0.47 per ordinary share, with one free attaching option with an exercise price of A$0.20 (K0.47 equivalent) and expiry date of Nov 30 2012, for every three ordinary shares subscribed for. 
Funds raised in the IPO will be used to develop the company’s oil and gas projects and to provide working capital for the company.
“KPL has 100% interest in four, onshore petroleum prospecting licences (PPLs) being PPL 337, PPL 338, PPL 339 and PPL 340,” it said.
POMSoX spokesman Vincent Ivosa said in October last year, KPL entered into farm-in agreements with Oil Search Ltd in relation to PPLs 338 and 339.
These agreements set out the terms upon which Oil Search could earn up to a 70% participating interest in the two PPLs, essentially by undertaking a seismic programme, and depending on the results of this programme, fund the majority of a two well drill programme on PPLs 338 and 339.
In addition, on March 18 this year, KPL was awarded a 20% participating interest in petroleum retention lease (PRL) PRL 21.
KPL’s joint venture partners in PRL 21 are Horizon Oil (Papua) Ltd, and Talisman Energy Niugini Inc.
PRL 21 encompassed two stranded gas fields (Elevala and Ketu) which were discovered by British Petroleum Development Ltd (BP) in the early 1990s.
KPL and its JV were currently drilling an appraisal well in Elavala2 before Ketu2.
KPL and partners would push ahead to commercialise the gas and condensate resources through a stripping plant for early cash flow, the POMSoX statement said.
In admitting the company to the exchange’s official list, the general manager of POMSoX, Geoff Mason said “that the listing of KPL extends the number of listed companies to 19”.
“The listing provides an additional opportunity for Papua New Guinean investors to buy shares in the company and contribute toward developing the entity’s projects in PNG.
“The listing also signals the confidence that KPL has in the local exchange and its abili­ty to provide a growing competitive market.
“The admittance and listing of KPL to the exchange’s official listing brings the total market capitalisation to K106 billion,” Mason said.