Interim Results

For Immediate Release 23 February 2012

Kea Petroleum plc

("Kea" or the "Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2011

Kea Petroleum plc (AIM:KEA) is pleased to present its Interim Results for the six months ended 30 November 2011.

Operational Highlights

2012 Drilling Schedule:

·; Puka-1 Q1 - Drill to 1600m depth

·; Mauku-1 Q1 - Drill top hole only with shallow rig

·; Mauku-1 Q2 - Deepen to 3400m

·; Douglas-1- H2 - Drill to 3000m depth

·; Angus-1 Q2 - Drill to 1500m depth

·; Mercury - Q2 - Offshore 3D seismic survey

Financial Highlights

·; Cash on hand at 30 November 2011 £10.7M

Chairman, Ian Gowrie-Smith said:

"Kea plans to drill four or more wells on four different prospects commencing imminently. Two of these targets are shallow Mt Messenger plays and two are deeper targets looking for both oil and gas.

"It has been a long time since the Company's immediate future was so exciting. A successful completion of this phase of Kea's development will reward shareholders for their patience."

For further information please contact:

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

Ian Gowrie-Smith, Executive Chairman

David Lees, Executive Director

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

Matthew Coakes / Daniel Conti

Buchanan Tel: +44 (0)20 7466 5000

Tim Anderson /Isabel Podda

CHAIRMAN'S STATEMENT

The coming months will be the most exciting in Kea's short life. Kea intends to drill four or more different wells in four prospects. Two of these targets are shallow Mt Messenger plays and two are deeper targets looking for both oil and gas.

Drilling Programme

Rig Contracts

Subsequent to the last Chairman's statement, Kea has entered into a drilling rig contract for the shallow well programme with Drill Force. The Drill Force rig will be used for Kea's shallow well programmes including Puka-1, Angus-1 and Mauku-1 top hole. Kea has also secured access to rigs capable of carrying out the Company's deep drilling campaign.

Mauku-1

The Mauku-1 well in permit PEP381204 is on schedule to be drilled during the second quarter of this year. Road access and site preparations have commenced, after an extensive consent process covering landowners, councils and Maori interests.

The Drill Force rig is expected to drill the Mauku top hole in mid to late March, and the deep drill rig will be used to deepen the well to its target depth of 3,400m commencing mid April. These dates are subject to a number of variables including the release dates of the rigs from other jobs and any delays in access road construction and site preparation which can be affected by severe weather conditions. The deep drill rig should take approximately 45 days to reach its target depth. The site is very challenging from an access point of view, with an upgrade of 20 km of public road and construction of 4 km of new access road over private land, to a remote location by the sea.

The Mauku-1 well will test the Mangahewa Sands which constitute the producing reservoir interval in Shell's Pohokura gas and condensate field, along trend to the south. A gas-condensate discovery at Mauku would be capable of being developed expeditiously due to onshore development wells being easier to drill than offshore, coupled with access to the national pipeline system running 25 km south east of the prospect; or potentially, in the upside case of a major discovery, by a 70 km subsea pipeline direct to Methanex's methanol plant at Motonui.

Mauku is considered, by the Directors of the Company, to have an upside potential recoverable resource in excess of 1000 BCF of gas and 50 million barrels of condensate/oil, with a median resource estimate approximately 1/3 that figure. The well is expected to cost approximately US$15m before testing, of which Methanex New Zealand Limited, a subsidiary of Methanex Corporation of Canada ("Methanex") will contribute 50%, as previously announced. Kea expects to farm out an interest in this prospect to further reduce Kea's cost contribution, on terms such that the greater part of the permit equity remains in Kea's hands.

Douglas -1

The site for drilling Douglas-1 in permit PEP 51153 has now been prepared and it is planned that the NRG rig will commence drilling this well following the completion of Mauku -1. The Douglas Prospect is mapped as a Tikorangi Limestone target. Douglas-1 has a target depth of 3,000 m, and an expected total cost of the well of US$4m excluding testing.

The Company is in advanced discussions to farm out a proportion of this well. Oil has been produced at prolific rates from the Tikorangi Limestone reservoir in the adjacent Waihapa field, which abuts the Douglas trap at Tikorangi level. Kea has just completed a key seismic line over the Douglas Prospect; and the early results of this seismic appear to confirm Kea's mapping of this high-upside prospect, which could be brought into production without delay in the event of discovery. The cost of conducting the seismic was met 50/50 by Methanex.

Puka -1

Puka-1, also in permit PEP51153, is expected to spud shortly following site preparation. The well is located on PEP 51153 and is targeting the Mt Messenger sands. Total depth is approximately 1,600 m and the expected cost, excluding testing, is US$1.5m. The Mt Messenger plays are part of Kea's two pronged strategy of drilling both higher risk large deeper targets such as Mauku-1 and Douglas-1 as well as the shallower Mt Messenger sands. A considerable number of producing oil and gas pools have been discovered in onshore Taranaki within the Mt Messenger sands. The most recent is the nearby Copper Moki oil discovery, made by New Zealand Energy Corp; with several similar discoveries made by Tag Oil Ltd. Both companies' shares have reacted very positively to those discoveries, and we believe the Mt Messenger plays to be highly prospective. Kea has agreed in principle to farm out part of this well and a more detailed announcement will be made as soon as a formal agreement has been reached.

Angus -1

The Company also has an obligatory well commitment on PEP 51155 and has chosen to drill Angus-1 to a total depth of 1,500m. This is also a Mt Messenger target, although the available seismic data is less definitive than at Puka-1. A possible reason is that gas in the rock section above the Angus target is obscuring the seismic; given also that there are prominent surface gas seeps over Angus. This project is currently under consideration as a Kea-Methanex alliance agreement project. The overall cost, excluding testing is expected to be approximately US$1.5 million.

Mercury

Kea is presently in negotiation with various parties to share a seismic program over this offshore prospect. Mercury is regarded by Kea as one of the company's main assets with a potential of 300 m barrels of oil. 

Management

The Board addressed the very high challenge of such an active drilling program with a restructuring of its team to bring in more experience and manpower. From 1 March I move from non-executive to Executive Chairman. This reflects the intensity of activity required over 2012.

Peter Wright, Kea's Finance Director, has relocated to New Zealand from the UK to provide hands-on financial control. These two changes enabled us to shift John Dennehy from his part-time executive duties back to a non-executive position on the Plc board where we are enjoying his knowledgeable contribution. The team has also been significantly strengthened by the recruitment of top level industry professionals in New Zealand.

David Bennett has given notice of his desire to step down from full time executive duties and will become to a non-executive director with a consulting role on exploration matters in the coming months.

Funding

The Board believes it has adequate funds to meet the drilling program outlined above without recourse to shareholders assuming the already advanced negotiations for farm outs are concluded satisfactorily, together with the favourable funding arrangements with Methanex.

Conclusion

It has been a long time since the Company's immediate future was so exciting. The successful completion of this phase of Kea's development will reward shareholders for their patience.

Ian Gowrie-Smith

Chairman

22 February 2012

This release has been approved by non-executive director Peter Mikkelsen FGS, AAPG, who has consented to the inclusion of the technical information in this release in the form and context in which it appears.

KEA PETROLEUM PLC

Notes to the Interim financial statements

for the SIX MONTHS ended 30 november 2011

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 2011.

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 2011 is unaudited. The comparative information for the year ended 31 May 2011 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