23 June 2009 ASX Limited Company Announcements Office Level 4 Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Kairiki Raises $8.1m in oversubscribed Offering Kairiki is pleased to advise that it has received firm commitments for a placement of 57.8m shares at 14 cents for total gross proceeds of $8.1m. The issue was strongly oversubscribed by institutional and sophisticated investor clients of Southern Cross Equities. The placement is the maximum number that can be placed under Kairiki’s available 15% capacity under the ASX listing Rules and is expected to be completed before 30 June 2009. These funds will provide Kairiki with the financial capability to pursue the development of its Tindalo oil discovery consistent with the Service Contract 54 (SC54) operator’s plans announced in May 2009. The joint venture’s plans are to fast track Tindalo with First Oil targeted for early 2010 based on a final investment decision to be taken by September 2009. The joint venture intends to utilise a jack-up rig to complete the already drilled Tindalo-1 well and produce oil into a floating storage offtake vessel (FSO). It is expected that the services and associated hardware will be available in the current market at costs significantly discounted to those experienced just 12 months ago. With the combination of the anticipated highly productive pinnacle reef reservoir and the excellent fiscal terms in the Philippines, the initial Tindalo development is expected to fund and support the subsequent development of the remaining inboard area of SC54, which includes 3 further discoveries and as many as 20 follow up low-risk drilling targets. We look forward to updating our investors on the progress of SC 54 as we move towards First Oil. For further information please contact: Laurie Brown Managing Director Kairiki Energy Limited 61 (8) 9388 6711
Company Highlights
ASX listed oil and gas company pursuing high impact projects in proven oil basins Focus on commercialising Philippines discoveries targeting First Oil in 2010 Ongoing farm-out activities in the Philippines being undertaken Quality board and management team
Kairiki Energy Limited | Suite 3 Churchill Court | 331 – 335 Hay Street | SUBIACO WA 6008 AUSTRALIA Phone: (+61 8) 9388 6711 | Fax: (+61 8) 9388 6744 | Website: www.kairikienergy.com | ABN: 34 002 527 906
SC54 – Inboard Development Area
SHN-B SHN B Prospect Custodio North Prospect
Custodio-1 redrill
Lawaan Prospect
Signal Head - 2 oil pool
Kamagong Prospect
SH-Sth Lead
North Nido-1 East
North Nido Up-dip Lead
Nido-1X-1
oil
Tindalo-1 Oil Discovery
Depth to Top Nido
100m C.I.
10 km
Yakal-1 Oil Discovery
SC54 Discoveries
Discovery: Discovery: Tindalo‐1 and Yakal‐1; Sept‐Oct 2008 Tindalo 1 and Yakal 1; Sept Oct 2008 Location: SC 54, 40km offshore Palawan Philippines Working Interests:
Joint Venturer
Nido Petroleum (Operator) Kairiki Energy
Working Interest
60% 40%
Y k l Yakal
Ti d l Tindalo
Water Depth: Reservoir: Seismic:
30 – 120 metres Nido limestone pinnacle reef play Vintage 2D, full 3D coverage (1998); PSDM(2002) Productivity – Nearby Analogues
Excellent nearby analogues Nido A d Nid B fi ld E ll t b l Nid A and Nido B fields achieved: hi d ‐ Plateau production 7,000 – 12,000 barrels per day per well ‐ Recovered approximately 40% of oil in place on plateau
Contingent Resources: Contingent Resources:
Tindalo Contingent Resources
P90 STOIIP (MMbbl) 5.0 P50 11.0 P10 24.5 Mean 13.4
Tindalo – A rig-based Development Plan
Work program focused on fast-track Tindalo development
•
• • • •
Single well production to jack-up rig and floating storage and offtake vessel d fl d ff k l Confirmation of key project criteria Plan of Development Project Approvals Final Investment Decision (FID)
First Oil Target Early 2010