Kairiki Energy raises $11.5m

Subiaco-based resource company Kairiki Energy Ltd has raised $11.5 million to fund its Philippines drill program.

The company said it had reached agreement to place nearly 50 million shares at 23 cents per share to investors managed by Patersons Securities Ltd and Southern Cross Equities Ltd.

Funds will go towards expanding its drill program in Service Contrcat 54 from one well to three wells.

Kairiki and its joint venture partner Nido Petroleum Ltd will drill at least two shallow water wells with a jack-up rig at the end of 2008, followed by drilling of the Gindara Prospect with a semi-submersible rig in 2009. The purpose of the capital raising is to assist in the funding of this accelerated drilling program that will form the basis of a larger scale program to be conducted over the next few years.

Shares in Kairiki, which had previously been in a trading halt, were unchanged at 24.5c this morning.