Namibia

Namibia Exploration Agreement

Key Petroleum has signed a Consortium Agreement with Pancontinental Oil & Gas NL for joint petroleum exploration activities offshore Namibia.  Key and Pancontinental believe that the area holds significant oil exploration potential and have been jointly studying existing regional data for some time.

Pancontinental currently holds a Reconnaissance Licence, No RL-1 of 2007 (‘RL’) covering an area of approximately 30,000 square kilometres, offshore from the coast of Namibia, in an area known as the Walvis Basin. Pancontinental is now applying on behalf of the consortium for part of this Reconnaissance Licence (RL) to be converted into a Petroleum Agreement (PA) and an Exploration Licence (EL). Key Petroleum has agreed to be a 50% participant in any successful award.

Offshore Namibia is an extension of the west African continental margin, which hosts prolific oil and gas producing areas such as Nigeria and Angola. Geology similar to that seen on the east coast of South America is also seen at various points. Offshore Namibian exploration activity is now increasing rapidly with companies such as Hunt Oil Company, BHP Billiton and Tullow Oil all acquiring exploration licences along the Namibian coast.

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