Vietnam Offshore Block Awarded to Keeper

Keeper Resources reports that PetroVietnam has selected Keeper and its bidding partner as the winners of a tender for offshore Block 124. Keeper participated in the bidding for oil and gas rights in the Phu Khanh basin along with a major US independent oil and gas producer. Finalization of the Investment License for Block 124 is subject to negotiation and execution of a Production Sharing Contract with PetroVietnam. Details of the terms of the Production Sharing Contract will be disclosed upon its finalization.

About Block 124

Vietnam's current production is 353,000 bbls/day of oil and 742 mmcf/day of natural gas. In the most recent bid round, nine blocks offshore of Central Vietnam were made available in the unexplored Phu Khanh basin which is geologically similar to the prolific Cuu Long Basin on trend to the south. The bulk of production from the Cuu Long Basin is from structurally high fractured granite basement reservoirs. Significant production is also obtained from structural and stratigraphic traps in Miocene and Oligocene sands. Block 124, which is 6000 square kilometers in size, has both a prospective basement high and anomalies in the sands defined by a low density 2D seismic grid. The area of the basement high is about 40 square kilometers. The Su Tu Den oil field, of similar size, is currently producing 78,000 bbls of oil/day from seven wells. A 3D seismic program will commence as soon as possible in order to further delineate these prospects.