Kea Petroleum - Re: KEA Stream Log - Puka Farm-out, Production Update and...

Puka Farm-out, Production Update and Mercury 3D Interpretation Puka update Kea Petroleum plc (AIM: KEA), the oil and gas company focused on New Zealand, is pleased to announce that commercial negotiations between Kea and its partner regarding the proposed farm-out of PEP 51153 (including the Puka discovery) have reached agreement, with the documents giving effect to the farm-out and resultant joint venture presently undergoing final legal review. The parties anticipate execution and announcement of the farm-out within the next seven days. Further to February's Puka operational update, announced on 11 February 2014, Kea has made progress sourcing the required equipment and securing a rig slot to remedy the down hole pump issues experienced at Puka 2 and expect production to recommence soon. Mercury 3D interpretation Initial interpretation by the Company of the 3D seismic survey conducted in 2013 over PEP52333 has now been completed. Structural and AVO (Amplitude Versus Offset) interpretation indicate that the Mercury oil prospect is of a potentially commercial size with prospective resource estimates of 67MMbbls (P50) and 158MMbbls (P10). The near shore and shallow water location further enhances Mercury's value and Kea has commenced farm-out activities.