Staying afloat: Kairiki will fund the Tindalo development from recently raised funds
Philippine farm-out canned for Kairiki
Australian independent Kairiki Energy’s attempt to farm-out a stake in Nido Petroleum’s Service Contract 54 off the Philippines to Focus Oil & Gas has failed.
The Perth-based company said today that it has been advised by Focus Oil & Gas that it will be unable to fund its obligations in relation to the farm-out agreement.
However, following Kairiki’s recent oversubscribed placement to investors, the company’s cash position as of today is very strong having raised about A$8.1 million (US$6.5 million), the outfit said.
These funds will provide Kairiki with the financial capability to pursue the development of its Tindalo oil discovery in the Philippines in the near term, with the flexibility of retaining its 40% interest in the inboard portion of SC54.
The plan is to first exploit the Tindalo discovery as a fast-track extended well test project using a jack-up rig to complete the already drilled Tindalo-1 well and produce oil into a floating storage and offtake vessel.
The final investment decision for the project is expected to be taken in September, according to Nido.
Looking ahead, Nido and Kairiki are expecting to drill on the Gindara and Lapu Lapu prospects, in the outboard area of SC 54, in the third quarter.