Alternative Stock Market-listed Kea Petroleum has announced plans to raise £5 million through the placing of 35,700,000 shares.

The oil and gas company, which is focused on New Zealand, has already received conditional commitments for £3 million.

Recent flow testing by Kea Petroleum has meant that the company has had to construct new production facilities – and it has now outlined an intention to drill a further well.

Ian Gowrie-Smith, chairman of Kea Petroleum, comments, ‘We are pleased that the investors continue to support the company in maintaining its momentum to exploit the Puka discovery, as well as enabling the company to carry out its permit obligations.

‘The majority of the commitment costs are fortunately now behind us. Whilst it was disappointing that the Mauku well failed to have hydrocarbons, shareholders should not lose sight of our transitioning to being an oil producer from being a pure explorer.’

Kea Petroleum listed on AIM back in February 2010.