Interim Results

For Immediate Release 28 February 2013

Kea Petroleum plc

("Kea" or the "Group" or the "Company")

INTERIM RESULTS FOR THE PERIOD ENDED 30 NOVEMBER 2012

Kea Petroleum plc (AIM: KEA), the oil and gas exploration company focused on New Zealand, is today pleased to announce its interim results for the six month period ended 30 November 2012.

Highlights

·; Increasing pace of exploration, testing and production including successful test results at Puka 1

·; Further oil strike at Puka 2 with likelihood of attractive flow rates

·; Testing results of Puka 2 expected shortly

·; Drilling operations have commenced at Mauku

·; Revenue from testing Puka 1 of £382,000

·; Pre- and post-tax loss of £1.49 million (30 November 2011: loss of £1.36 million)

·; Cash on hand at 30 November 2012 of £11.35 million (30 November 2011: £10.69 million)

Drilling Schedule 2013

·; Mauku-1 Q1 - Drill to 3400m depth

·; Mercury Q2 - Offshore 3D seismic survey

·; Puka-3 Q3 - Drill to 1600m depth

·; Hickman Q2/3 - 48km 2D seismic survey

·; Angus-1 Q3 - Drill to 1400m depth

Kea Petroleum's Chairman, Ian Gowrie-Smith, said:

"The discovery of oil at Puka was a vital step towards Kea achieving its ambition to become a significant player in oil and gas production. The drilling results confirm our belief in our active drilling programme and we look forward to building on our recent successes over the next 12 months. The recent Puka results have favourably positioned Kea to continue growing its production, whilst the drilling of Mauku has the potential to provide the Company with potentially significant near term upside.''

For further information please contact:

Kea Petroleum plc Tel: +44 (0)20 7340 9970

David Lees, Executive Director

RBC Capital Markets (NOMAD) Tel: +44 (0)20 7653 4000

Stephen Foss

Daniel Conti

WH Ireland Limited Tel: +44 (0) 20 7220 1666

James Joyce

Nick Field

Buchanan Tel: +44 (0)20 7466 5000Mark Court

Fiona Henson

Sophie Cowles

CHAIRMAN'S STATEMENT

I am pleased to report that the current pace of exploration, testing and production is the most active in the Company's short history.

The Greater Puka Field

The recent announcement of striking further oil in the Puka field better positions the Company to unlock the potential of the field. Kea's decision last year to carry out a NZ$5 million 3D seismic over the entire area of the possible Puka field has now proved most expeditious as the combination of this 3D data, together with the information gleaned from drilling and testing both Puka 1 and Puka 2, should give us a very good idea of what we are looking for and where, as well as a signpost to possible reserves.

As the 3D data has only very recently become available for interpretation, Kea does not expect to be able to estimate reserves at this stage but remains comfortable with the previously stated view that 1 to 3 million barrels (mmbbls) of oil (gross) continues to be a real possibility with an upside of 7 to 10 mmbbls (gross). Establishing reserves and increasing oil production will involve drilling as soon as possible and Kea expects to be able to advise shareholders in due course about the forward drilling programme.

Kea's production target from the Puka field remains 2,000 barrels of oil per day, which is conveniently located nearby to the required infrastructure, pipelines, roads and sea oil terminal.

Production from Puka 1 has been limited since its discovery due to a number of factors associated with the on-going work programme to appraise the Puka discovery, which includes the acquisition of the Puka 3D seismic and drilling Puka 2. As previously advised, the Puka 1 well was designed as a low cost exploration well to determine if the Puka prospect contained a commercial hydrocarbon accumulation. Accordingly, the well was drilled with a small diameter hole which has proven to be problematic for production of waxy light crude oil. Following retrieval of the downhole gauges from Puka 1 in late January 2013, analysis of the data indicates that the Puka 1 pool is extensive with no confining boundaries detected which confirms the preliminary interpretation from the initial flow period.

The Puka 2 well, by contrast, was designed to facilitate future production, having been drilled with a substantial deviation of 600 meters in an attempt to intersect the postulated lower Mount Messenger Sands. Consequently, the main hole section was drilled at 81/2" diameter with 7" production casing and crosses the zone of production at a 45° angle, thereby increasing the thickness of sand intersected and enabling higher flow rates.

The drilling rig has been released from Puka 2 with the completion installed and the well perforated prior to testing. Site works are currently underway and surface equipment is being mobilized to site in preparation for testing operations. At the end of the Puka 2 test flow period, Puka 1 will be brought back into production to test the optimal flow parameters for the two wells.

Mauku

Mauku is considered by the Directors of the Company, to have an upside gross potential recoverable resource of 1,000 billion cubic feet (bcf) and 50 million barrels of condensate/oil, with a median gross resource of 485 bcf and 28 mmbbls of condensates.

The well has reached a depth of 507 meters and has a programmed total depth of 3400 meters which is anticipated to be reached in early Q2. Should the well encounter hydrocarbons, testing will commence and carry on for a number of weeks. The total cost of the well without testing is expected to be NZ$15 million.

The Mauku well is being drilled as an Alliance project with Methanex. In return for a Gas Sales Agreement for any gas discovery, Methanex are funding 50% of the cost of both the hole and any subsequent testing, up to a total US$7.6 million. Kea remains the owner of 100% of the licence and discovery. Kea is in negotiations with multiple international parties regarding a possible farm-in to the Mauku prospect, however given the advanced state of the project it will be difficult to conclude satisfactorily any such arrangement within the required time frame.

Getting to the point of drilling Mauku has been a tortuous process and has been subject to many delays. Consents from all affected parties and councils proved challenging for many reasons, generally due to the fact that the area in which Mauku sits has very little experience of prior drilling activity. Road and site access was problematic and unfavourable winter weather mitigated against an earlier start to site preparation and drilling.

Kea is also exploring other opportunities both in its own prospect portfolio and under its alliance with Methanex. 

Mercury

The Board remains very enthusiastic about the Mercury prospect (located offshore on PEP52339) with in house estimates of up to 159mmbbls of oil (gross). The prospect is located seven kilometres offshore and is expected to be drilled next year. Kea is currently in discussions with potential farm-in parties and the Company's intent is to farm down some of its interest in order to preserve funds for its onshore activities. 

Kea intends to carry out a seismic programme during 2013 to further define the prospect.

Angus 1

The Company has an obligatory well commitment on PEP51155. This had been deferred pending the recent granting of an extension to the lease area to cover a lead known as Hickman, where planning is underway for the acquisition of 48km of 2D Seismic under the Methanex Alliance agreement. Regardless of the seismic programme, the Company is required to drill a well in the current year which in all likelihood will be Angus. This is targeting the Mount Messenger similar to Puka although the seismic is less definitive. The cost of the well will be approximately NZ$3 million and all required consents have already been obtained.

Douglas 1

No further work has been done on this suspended well whilst the Company's human and financial resources are concentrated on its other prospects.

Management and Board

At the Company's AGM in November David Bennett, a Founding Director of Kea, decided not to stand again for re-election and consequently ceased to be a Director of the company. The Company owes much to David's judgement on the Taranaki basin for its current successes and we wish him well. We were pleased to welcome Richard Parkes, Kea's Managing Director, to the Board in October 2012. He joined Kea as Managing Director in July 2012 and his breadth of experience has already been of significant value to the Company.

Funding

In September 2012, the Company raised £3.1 million from the exercise of warrants at a price of 8p. Subsequently in November 2012, the Company raised a further £7.0 million with the placement of a further 87,500,000 new shares at 8p a share. More recently certain broker warrants that were outstanding at 8p have been exercised bringing in a further £292,850. 

Outlook

The discovery of oil at Puka was a vital step towards Kea achieving its ambition to become a significant player in oil and gas production. The drilling results confirm our belief in our active drilling programme and we look forward to building on our recent successes over the next 12 months. The drilling of Mauku has the potential to further provide the Company with significant near term upside.

Ian Gowrie-Smith

Chairman

27 February 2013

KEA PETROLEUM PLC

Notes to the Interim financial statements

for the SIX MONTHS ended 30 november 2012

1. Basis of preparation

This interim financial information has been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The accounting policies, methods of computation and presentation used in the preparation of the interim financial information are the same as those used in the Group's audited financial statements for the year ended 31 May 2012.

The financial information in this statement does not constitute full statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the six months ended 30 November 2012 is unaudited. The comparative information for the year ended 31 May 2012 was derived from the Group's audited financial statements for that period as filed with the Registrar of Companies. It does not constitute the financial statements for that period.

2. Loss per share

The diluted loss per share does not differ from the basic loss per share as the exercise of share options

would have the effect of reducing the loss per share and is therefore not dilutive.

3. Share capital

4. Events after the balance sheet date

In February 2013 Kea Petroleum announced that its Puka-2 well had made a new oil discovery in the Mako sands.

In February 2013 the Company was granted an extension of acreage of 23.4km2 in its PEP 51155 licence area.

In February 2013 a total of 3,660,625 warrants of 8p were exercised.