Key Petroleum Limited · ASX:KEY

Key Petroleum — Shareholder Meeting (November 2010)

19 slides from Key Petroleum's shareholder meeting presentation, Nov 22, 2010

  1. Slide 1: Annual General Meeting 22 November 2010

    “Welcome” For personal use only ANNUAL GENERAL MEETING 22 NOVEMBER 2010 QV1 Building 250 St Georges Terrace Perth Western Australia 1 1

  2. Slide 2: Presentation Disclaimer

    PRESENTATION DISCLAIMER The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Key Petroleum Ltd and consult with their own legal, tax, business and

  3. Slide 3: Key Petroleum - It's About Creating Long Term Value

    KEY PETROLEUM – „ITS ABOUT CREATING LONG TERM VALUE‟ For personal use only  FOCUSED - Global Portfolio of Assets  DIVERSIFIED - Oil And Gas Expl. And Prod.  DISCIPLINED - Approach to Spending Funds  CONSTANTLY SEARCHING - For New Opportunities  LISTEN - To Our Shareholders Views 3

  4. Slide 4: Shares on Issue, Share Price and Market Cap

    SHARES ON ISSUE 149,677,405 For personal use only SHARE PRICE (19/11/10) $0.043 OPTIONS (Current) 250,000 @ 30c Expiring 30/11/2011 8,200,000 @ 7.5c Expiring 30/11/2011 OPTIONS (Expire Now) 5,000,000 @ 50c 30/11/2010 700,000 @ 20c 30/11/2010 CASH ON HAND $2.5 Million DEBT Nil MARKET CAP $7.0 Million

  5. Slide 5: Our Business Highlights

    Our Business Highlights QDbotatveee e+ Potential for 400 bopd production + Two well drilling programme (©) Diilingrg’soutced | des Eprning 459% terest n block by 60% capped at $1.35 Million Dollars ‘e+ Drilling niente place Q4 2010 | #4 Confpetid pyrchase of 100% of ME ++ Sales revenue from day one

  6. Slide 6: Key Operating Areas

    KEY OPERATING AREAS What is providing the means to transform Key Petroleum ?  TEAM OF GOOD, EXPERIENCED AND DEDICATED PEOPLE. For personal use only  ONSHORE UNITED KINGDOM.  Oil production from two low cost oilfields in Weald Basin  Drilling of development well in Lidsey Oilfield, Lidsey #2z  O

  7. Slide 7: Key's Short Term Objectives

    KEY‟S SHORT TERM OBJECTIVES ? • LIFT PRODUCTION TO 1000 BOPD BY MID 2011 • ACHIEVE STEP CHANGE IN MARKET CAP For personal use only HOW ARE WE GOING TO ACHIEVE THIS ? • Perth Basin • Farmed-in to shallow onshore , low cost drilling campaign • Starting now, Dunnart-1 and Dibbler-1 exploration wells. ±

  8. Slide 8: EP437 Regional Picture

    EP437 REGIONAL PICTURE  Key Earning 45% For personal use only  Spud - first well – November 2010  TD of wells ≈ 550 and 720 m  Oil charge - evident in several EP 437 wells, including Conder-1 (brown oil stain and blebs of waxy oil in cuttings)  Kockatea Shale - one of the best, oil prone marine

  9. Slide 9: EP Prospects, Leads & Adjacent Fields

    EP 437 PROSPECTS, LEADS & ADJACENT FIELDS RESIDUAL GRAVITY MAP Conder South Lead Allanooka West Lead For personal use only DIBBLER EP437 Wye Knot Lead Mount Horner cumulative prod DUNNART 1.9 MMBO PARAMETER DUNNART DIBBLER UNRISKED P90 - Mean – P10 Gross Reservoir Vol. 106 m3 1 – 11.25 -35.00 0.5 -

  10. Slide 10: EP - Prospective Resource

    EP 437 - PROSPECTIVE RESOURCE For personal use only CONDER-1 COMPOSITE LOG Oil Staining  2D seismic coverage & good well control 4MMcfd on 3/4 “  Critical Risk: Trap integrity – cross Dibbler 1.7MMcfd on 3/8” fault seal  Post-mortems of previous EP 437 wells: Wye-1 dual pool gas discovery was a v

  11. Slide 11: Payback and Cumulative Cash Flow Charts

    PAYBACK AND CUMMULATIVE CASH FLOW CHARTS Potential Dunnart Unrisked P10 (Net to KEY) For personal use only Dibbler Unrisked P10 (Net to KEY) 400 20.0 350 250 10.0 300 15.0 200 8.0 250 BOPD $ MM 150 6.0 200 10.0 BOPD $ MM 150 100 4.0 100 5.0 50 2.0 50 0 0.0 0 0.0 Cumm Cash Flow BOPD Cumm Cash Flow BO

  12. Slide 12: Production (Brockham & Lidsey)

    PRODUCTION (BROCKHAM & LIDSEY): For personal use only  Acquired beginning of Q4 2009  Provided oil sales revenue to Key Petroleum from day one (Priced to Brent).  Currently ≈ 80 BOPD  Simple process, water knock out production operations MAIN NEAR TERM FOCUS NOW LIDSEY #2 - DEVELOPMENT WELL:  C

  13. Slide 13: Activity on East African Coast Increasing

    Activity on East African coast For personal use only increasing – Offshore Tanzania – • Deepwater action : Petrobras, Shell, Exxon, Statoil, BG & Ophir Onshore Tanzania – • Ongoing drilling by Maurel & Prom and Tullow in Ruvuma Northern Mozambique – • Anadarko 6 well 2010 • 2-3 discoveries so far •

  14. Slide 14: West Songo Songo and Nyuni PSA

    WEST SONGO SONGO NYUNI PSA 50% Key & Operator 20% Key For personal use only  1 Tcf undiscovered gas  Appraisal seismic shot over Kiliwani North gas  Tanzania gas market niche discovery (40 MMscfd) over next 4 years  Kiliwani North  Sheltered, shallow water, commercialisation simple development

  15. Slide 15: West Sardinia, Lampedusa and Borsano Licences

    WEST SARDINIA, LAMPEDUSA, & BORSANO LICENCE (100%) ELBA SOUTH  Close to industrial City of Milan, (100%) Po Valley For personal use only  West Sardinia (Awarded Exploration Status)  Extension Requested, Prospective Frontier shelf area, for both oil and gas Dual plays – Shallow oil, deep gas. Bors

  16. Slide 16: The Play

    THE PLAY For personal use only  Pelagian Shelf (7 BBOE discovered off Tunisia & Libya - Oilsearch 2008)  Oil prone Cretaceous source rock  Italian Govt “take” <40%  Lampedusa unexplored since 1980’s  Key has mapped original seismic data  Leads with unrisked mean STOIP up to 250MM bbl  Next st

  17. Slide 17: Suriname Activity

    ACTIVITY: Uitkijk – For personal use only Uitkijk Block 7 mm bbls Staatsolie announced 7 mm Coronie Block est‟d barrels estimated reserves 5 wells Q4 2010 Reserves  10 wells drilled - 2008/2009  Awaiting development plan Coronie –  5 wells to be drilled, (Tullow dg announced drilling to commence

  18. Slide 18: Drilling Activity by Region

    AUSTRALIA ENGLAND TANZANIA SURINAME EP 437 BROCKHAM & LIDSEY WSS & NYUNI CORONIE For personal use only Key - 45% Key - 100% Key - 20% & 50% Key - 1.75% DRILLING DRILLING ONSHORE ONSHORE OFFSHORE/ ONSHORE ONSHORE (Island) PERTH BASIN SOUTHERN ENGLAND NYUNI BLOCK 2 WELL 1 WELL 1 WELL 5 WELLS EXPLORATI

  19. Slide 19: Summary of Plans by Region

    AUSTRALIA (45%) EP 437 - Drilling Programme And Building On Its Success For personal use only UNITED KINGDOM (100%) Maintaining & Improving Current Production Preparations for drilling of development well Lidsey #2 Looking at number of onshore opportunities for drilling participation in 2011 TANZANI

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