Company Profile
Key Petroleum Ltd (Key) was established to take advantage of international petroleum opportunities identified by the Company's Directors, based on their many years of oil and gas industry experience and extensive network of contacts. They have placed emphasis on quality assets in proven oil and gas regions and where early drilling opportunities were already identified.
The Company also wanted the projects to be located in politically stable countries with attractive fiscal terms and where possible, existing well built and operated, quality infrastructure.
Recently Key acquired 100% interest in two onshore producing oil fields in the United Kingdom called Lidsey and Brockham. Both fields providing an immediate revenue stream from this acquisition.
Earlier the company had negotiated entry into the prospective Nyuni Block, directly adjacent to the producing Songo Songo Gas Field, located offshore Tanzania, East Africa. The east coast of Tanzania has had a lot less activity when compared with the west coast of Africa. This allowed Key Petroleum to gain entry into a prospective area for a lower cost than would have been required for the western side of the continent.
This approach was rewarded with the success of the Kiliwani North #1 Well in the early part of 2008. A 60m gross gas column was intersected in a separate accumulation of gas to that being produced at the Songo Songo Gas Field. Importantly, for Key Petroleum whose main aim is to grow, the gas from this well can be commercialised due to its close proximity to the Songo Songo gas processing facilities which are approximately 3.5km away and were brought on-stream in 2004.
Key Petroleum further increased its presence in Tanzania by entering into a Production Sharing Agreement (PSA) with the Tanzanian Petroleum Development Corporation (TPDC) and Ministry of Energy for an area directly to the west and adjacent to the producing Songo Songo Gas Field. The area is classified by the Ministry as, 'West Songo Songo'. Key is the designated Operator of this block and is in a 50/50 joint venture with Aminex plc, the UK listed company, who are the Operator of the nearby Nyuni block.
At the same time as entering into the Nyuni Joint Venture, Key Petroleum finalised agreements with Puma Petroleum Ltd, a UK operated company, to acquire all its assets and interests in Italy involving both onshore and offshore exploration projects. Key has been active in Italy since its listing on the ASX in 2007 and it has converted Puma Petroleum Ltd into an Italian domiciled company, Puma Petroleum S.r.L, revitalizing it with renewed branding, extensive promotion into the Italian oil and gas industry and the ongoing development of credibility with the various Ministries and Government Institutions with which it is working closely to process its projects. Key, through Puma Petroleum, is working to develop its Italian assets and has a number of local Italian specialists working on its projects, bringing valuable local knowledge and insight to them.
Key is also the 50% owner of Portsea Oil and Gas Pty Ltd. Portsea holds a 3.5% free carried interest through a drilling programme in 2 onshore blocks, Coronie and Uitkijk, in Suriname a country in the north of South America. This is in an area where the state owned energy company Staatsolie Maatschappij Suriname NV has good quality infrastructure already installed, and is operated by their skilled local workforce. Of the 10 wells drilled to date in the Uitkijk block all have encountered hydrocarbons and a 7mmbbl reserve has been indicated. Plans are underway for the drilling of 5 wells in the Coronie block to the west of the largest oil field in Suriname, Tambaredjo, believed to have 1 billion barrels of oil in place when first brought onstream in 1984.
The short term objective of the Company is to increase its oil production revenues and to establish petroleum reserves from drilling that can be quickly brought into production. Key plans to continue this approach and is continuously looking for other good quality projects that can provide the company with growth and financial strength. Key Petroleum's longer term corporate goal, guided by an experienced, multi skilled Board, financial advisors and a strong technical team, is to create an integrated upstream oil and gas exploration and production company.
