Key Petroleum Commences Completion Ops at Dunnart-2 Well in Perth Basin

Key Petroleum (Australia) Pty Ltd., a wholly owned subsidiary of Key Petroleum Limited (Key) and Operator of EP437, reported Tuesday that all equipment has now arrived at the Dunnart-2 site in permit EP437 in Western Australia's onshore Perth Basin and Blow Out Preventer (BOP) testing has been completed. As at 18:00 yesterday the DCA Rig 6 rig crew were rigging up the flowline from the mud tank to the wellhead in preparation to run in hole to commence completions operations later today, June 2.

Having arrived on site over the weekend, Key Managing Director, Kane Marshall, oversaw the BOP pressure testing and continues to supervise preparations for the completion and testing program. The Operator will commence running in hole with a casing scraper on 3.5 inch tubing prior to running the production packer and tubing string as part of the completion operations prior to the flow testing operation. Flow back tanks rigged up to a manifold in conjunction with the flare line have now also been installed.

Conditioning of the hole and completion operations are expected to take place over the next few days prior to commencement of the testing phase.

Joint Venture participants in EP437 are:

• Key Petroleum Limited (Key Petroleum (Australia) Pty Ltd) (Operator) - 43.47 percent
• Rey Resources Limited (Rey Oil and Gas Perth Pty Ltd) - 43.47 percent
• Caracal Exploration Pty Limited - 13.06 percent