Key Petroleum updates on drilling at Dunnart-2 well in EP 437 in Perth basin

7/22/2014

Key Petroleum updates on drilling at Dunnart-2 well in EP 437 in Perth basin

NEDLANDS, Australia -- Key Petroleum reported that since the statement on July 14, DCA Rig 7 has completed drilling the 17 ½” conductor hole section at Dunnart-2 exploration well in permit EP 437 in Perth Basin, Western Australia, tripped out the hole and ran the 13 3/8” conductor to approximately 85 m below rotary table (RT). The conductor has now been cemented and the forward plan was to drill out the 13 3/8” conductor shoe and drill 12.25 inch hole through the Yaragadee Formation into the Cadda Formation to a depth of approximately 300 m RT.

At 300 m RT, the 9 5/8” casing will be run in hole and cemented before the blow out preventor (BOP) is nippled up to the well head to allow drilling of the 8 ½” hole section to the primary Bookara Sandstones at approximately 617 m RT.

JV participants in EP437 are: Key Petroleum (Key Petroleum (Australia) Pty Ltd) (Operator) - 43.47%, Rey Resources (Rey Oil and Gas Perth Pty Ltd) - 43.47% and Caracal Exploration Pty Limited - 13.06%.

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