re: Ann: Update on company acquisition and It... "they have not...

re: Ann: Update on company acquisition and It... "they have not advanced KN#1 since April last year"


31/3/08 - KN#1 well drilled and completed as a production well and drill rig released.

29/4/08 - Commercialisation of KN#1 commenced and discussions with potential gas customers continuing.

2/6/08 - KN#1 well testing commences.

5/6/08 - KN#1 well initial test results indicate a strong, stabilised flow of gas at 40mmscf/day through a 72/64" fixed choke, condensate content of 1bbl/mmscf.

18/7/08 - KN#1 well testing completed and discovery confirmed as commercially viable. Estimates that total undiscovered gas in the Nyuni block could be in excess of 2tcf.

31/7/08 - Acquisition of seismic for appraisal of the KN#1 discovery and other areas with the Nyuni block approved by the JV partners.

22/10/08 - The joint venture is now reviewing a number of development options to commence gas production quickly. The Nyuni Joint Venture is at this time working on the early stages of development of this new gas field.

31/10/08 - KN Commercialisation Process - The Operator has
advised Key that it is awaiting formal responses from TPDC / Ministry of Energy on a number of issues relating to commercialisation process and declaration of licence areas. Environmental Impact Assessments being undertaken for the seismic surveys.

26/11/08 - Admission by KEY that progress has not been anywhere near as rapid as they would have liked. Still waiting on governmental approval for a 'fast tracked' 12 months extended well test & Environmental Impact Assessments for a pipeline route.

29/1/09 - A designated “Location” over the KN gas pool and adjacent areas was approved by the Ministry of Energy. EIA granted for seismic to be conducted.

5/2/09 - The JV continues its negotiations with TPDC and the Ministry of Energy to bring about a satisfactory commercialisation agreement.

30/4/09 - KN Commercialisation Process - Various possibilities are being reviewed and specialist commercial negotiators have been contracted to speed up the process. Market reviews have also been taking place and further work in this area is being undertaken.

22/5/09 - A contract for the recording of a new 2D seismic survey has been signed. Discussions relating to the terms of the commercialisation of KN#1 gas are continuing at present in Tanzania in parallel with the necessary environmental work. In the current economic climate it is now probable that the KN#1 gas discovery will aim for full commercial development via the simple tie back method to the Songo Songo gas processing plant.

28/7/09 - Appraisal seismic operations commenced during June. Field operations were completed at end of July 2009.

Good to see they aren't sitting around doing nothing since April 2008. I bought into the IPO and have twice added to my holdings, if I get all that I've applied for with this rights issue I would have increased my initial holding fourfold.