21 February 2013 The Manager Australian Securities Exchange Company Announcements Office Level 4/20 Bridge Street SYDNEY NSW 2000 Dear Sir RE: DRILLING UPDATE FOR CYRENE-1 IN EP 438, CANNING BASIN, WESTERN AUSTRALIA FOR THE PERIOD 0600 HOURS 12 FEBRUARY 2013 TO 0600 HOURS 21 FEBRUARY 2013 Please find details of the drilling activities of Cyrene-1 attached. Buru Energy Limited 37.5% Mitsubishi Corporation (Diamond Resources (Canning) Pty Ltd) 37.5% Key Petroleum Ltd (Gulliver Productions Pty Ltd) 20.0% Indigo Oil Pty Ltd 5.0% Regards KANE MARSHALL Managing Director KEY PETROLEUM LIMITED Key Petroleum Ltd Ground Floor, 39 Stirling Highway, Nedlands WA 6009 T: +61 (0) 8 6389 0322 F: +61 (0) 8 6389 0697 E: [email protected] W: www.keypetroleum.com.au ABN 50 120 580 618
ASX AND MEDIA ANNOUNCEMENT 21 February 2013 DRILLING REPORT FOR CYRENE-1 IN EP 438, CANNING BASIN, WESTERN AUSTRALIA FOR THE PERIOD 0600 HOURS 12 FEBRUARY 2013 TO 0600 HOURS 21 FEBRUARY 2013 Since the last report issued at 0600 hrs 12 February 2013, DCA Rig 7 has completed all coring and logging of the Goldwyer Formation to 1022m RT (rotary table). The 7” casing required to isolate the Goldwyer and other formations in the 8 ½” hole have now been run in the hole and cemented. The completion of coring in 8 ½”corresponded with consistent oil shows across the lower Goldwyer Formation and background gas up to 5 units in the lower part of the Goldwyer. These results are consistent with the drilling of the Goldwyer to date, indicating that the Goldwyer Formation is a good source rock for generating oil in this part of the Canning Basin. All necessary BOP testing to drill ahead in the 6” hole section were completed and drilling has now been completed into the Willara Formation conventional oil objective with total depth (TD) called at 1070m RT. Background gas was observed to be between 5 and 10 units with some oil shows observed through the Willara sequence. The forward plan is to run wireline logs and then conduct a drill stem test in the 6” hole to fully evaluate the Willara Formation. The purpose of the flow test is to establish the true formation fluid in the Willara Formation (water or oil) and if any hydrocarbons are present, whether they can flow at economic rates. The next ASX release will be made when the Willara Objective has been fully evaluated or if there is a material event to report. For media and shareholder enquiries please contact [email protected] Kane Marshall BSc (Geology), BCom (Inv & Corp Fin), Masters PetEng, SPE, AAPG, PESGB, SPWLA Managing Director Key Petroleum Ltd Telephone: +61 8 6389 0322 Competent Persons Statement Information in this ASX Release relates to information compiled by Mr Kane Marshall. Kane Marshall is a Practicing Petroleum Engineer and holds a BSc (Geology), a BCom
KEY Price at posting:
2.3¢ Sentiment: Hold Disclosure: Held
(20min delay)
