Key Petroleum Limited advises that during the period since the issue of Drilling Report No. 5 the Operator drilled ahead in 8 ½' hole from 495m in the Woodada Formation to 612.0m in the Kockatea Shale. Two significant and encouraging gas shows were recorded within the Kockatea Shale.

These significant gas shows were 33.70 units of total gas at 528.9m and 27.3 units of total gas at 530.5m. Sandstones intersected with gas peaks are interpreted to be the Arranoo Sandstone within the Lower Triassic aged Kockatea Shale and are approximately ten times the background gas recorded in this section of the Kockatea Shale. These gas peaks will be evaluated by electric wireline logs.

The Woodada Formation was intersected at 482.5m RT and was high to prognosis as was the Kockatea Shale at 503m RT.

Tags: Key Petroleum Ltd.