Douglas 1 and Puka 1 Commence Testing (9394D)

TIDMKEA

RNS Number : 9394D

Kea Petroleum PLC

24 May 2012

 
 For Immediate Release   24 May 2012 
 

Kea Petroleum plc

("Kea" or the "Group")

Douglas 1 and Puka 1 Commence Testing

Kea Petroleum plc (AIM:KEA) today announces an update on current drilling activities in New Zealand and its drilling programme in Australia.

Douglas -1 Total Depth Reached and Testing Initiated

Drilling of Douglas-1 well on permit PEP 51153 within New Zealand's onshore Taranaki Basin has been completed, having reached its total depth of 3000m. The NRG rig has been de-mobilised and moved offsite. Kea has intersected the target Tikorangi Limestone, which hosts oil in the adjoining Waihapa oil field. As the well encountered extensive open fracture networks together with some encouraging hydrocarbon shows, Kea moved directly to testing which is expected to last approximately four weeks. Targeting of the Douglas 1 well was assisted by the recent completion of a key seismic line over the Douglas prospect. In the event of a commercial discovery, production will be assisted by Douglas 1 having been drilled from the former Wingrove site which has existing production facilities.

The Douglas completion and testing is budgeted to cost US$1.4 m.

Puka-1 Completion and commencement of testing

The Drillforce rig has arrived on the 100% owned Puka-1 well in permit PEP 51153, to begin completion of the well and testing. Completion and testing is expected to take up to two weeks. Kea announced on 10 April that Puka-1 had intersected a 40m interval of Mt. Messenger reservoir quality sands with a net pay of between 4.5m and 9m. Independent petrophysical analyses of electric logs indicate moveable hydrocarbons in good reservoir quality sands. Kea has not altered its original estimate of gross recoverable resource of one million barrels of oil with a potential upside of up to three million barrels of oil.

Wells in Australia

In order to concentrate on the above activities Kea has signed a deed of termination agreement to dispose of its interests in two Australian licences. Kea's expenditure on its Australian operations was limited to AU$1.24M.

This release has been approved by non-executive director Peter Mikkelsen FGS, AAPG, who has consented to the inclusion of the technical information in this release in the form and context in which it appears.

For further information please contact:

Kea Petroleum plc Tel: [phone]

David Lees, Executive Director

RBC Capital Markets Tel: [phone]

Matthew Coakes / Daniel Conti

Buchanan Tel: [phone] Tim Anderson/Sophie Cowles

Notes to Editors:

Kea Petroleum is an AIM listed oil and gas exploration company with interests in four petroleum exploration permits in the Taranaki Basin of New Zealand . Kea listed on the London market in February 2010.

This information is provided by RNS

The company news service from the London Stock Exchange

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