Interim Results

For Immediate Release 28 February 2014

Kea Petroleum plc

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

INTERIM RESULTS FOR THE PERIOD ENDED 30 NOVEMBER 2013

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 2013.

Highlights

· Revenue of £1.2 million for the 6 month period

· Total production to date from Puka 1 and Puka 2 of over 39,500bbls

· Negotiations on-going for the farm-out of Puka with completion expected in Q1 2014

· Final evaluation of the 3D data on the Mercury prospect expected in Q1 2014

· Agreement with Darwin Strategic to raise up to £1.08 million by the issue of Convertible Loan Notes with the first two tranches already issued

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

"We remain excited by the potential value of the Puka discovery and look forward to the completion of the farm-out process, which is currently in the final stages of negotiation. We also look forward to imminent data from the Mercury prospect. Whilst we have experienced some challenges in the past few months, we retain our ambition of becoming a significant player in oil and gas production in the Taranaki basin."

For further information please contact:

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

David Lees, Executive Director

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

Dear Shareholders,

Kea has experienced a challenging period since the preliminary results were released last October though we remain convinced by the potential of the Taranaki basin. It has become clear, following last year's 3D seismic interpretation of the Puka discovery, that both Puka 1 and Puka 2 have been drilled on the edge of the channel fairway. The key next step is to confirm better sands in the main channel by further drilling, which we plan to achieve through the farm-out process currently in the final stages of negotiation.

It was particularly frustrating to suffer mechanical difficulties with a down hole pump at Puka 2, as announced on 11 February 2014. This has contributed to significantly reduced production but the pressure build-ups experienced in the past few weeks highlight that both Puka 1 and Puka 2 holes have good access to larger drainage pools. Our immediate priority is to complete repairs to the downhole pump at Puka 2 as soon as possible to increase production and also to ensure that further wells target larger reservoir intersections in the channel fairway.

Farm-out

The farm-out process that began with the strategic review in September 2013 led to the signing of a Heads of Agreement in December. Due diligence and ongoing discussions continue and Kea still anticipates the conclusion of these discussions in Q1 2014.

Puka

Despite a recent fall in production primarily due to mechanical issues with the down hole pump at Puka 2, production has continued from both wells and over the extended testing period Kea has produced a total of over 39,500bbls from the field, with production of 2,532bbls in January 2014.

Repairs to the down hole pump at Puka 2 should be completed in March. The pump remains in production, but at significantly reduced efficiency, and we are hopeful that the repairs will restore the productivity to or near previous levels. The build-up of pressure during the most recent shut-in period of Puka 2 confirms the productive capacity of the well.

The process of replacing diesel generators on the Puka site with gas-fired generators is progressing well and the first of three generators has already been installed. The remaining generators are expected to be installed by the end of Q1 and this has already had an impact in reducing costs. Discussions with interested parties with a view to utilising produced gas to generate electricity on site for sale into the grid have been put on hold until the conclusion of the farm-out process.

PEP52333

The interpretation of the 3D data on the Mercury prospect continues and Kea expects to have completed the evaluation of this data by the end of Q1 2014 in order to pursue the possibility of offering it for a farm-out.

PEP381204

Kea has continued with its work program on Mauku with some additional interpretation and evaluation work. The Company has a drill-or-drop decision to make on this permit by mid April 2014, but has requested an extension of the work program to allow for the work to be completed.

Finances

The Company has sought to reduce overhead costs in order to align them with income from oil production. Kea has also entered into an agreement with Darwin Strategic Limited to raise up to £1.08 million by the issue of Convertible Loan Notes. The first two tranches of loan notes have been issued and converted into shares. The agreement with Darwin has provided funds to support the ongoing working capital needs of the Company.

Outlook

We remain excited by the potential value of the Puka discovery and look forward to the completion of the farm-out process, which is currently in the final stages of negotiation. We also look forward to imminent data from the Mercury prospect. Whilst we have experienced some challenges in the past few months, we retain our ambition of becoming a significant player in oil and gas production in the Taranaki basin.

Ian Gowrie-Smith

Chairman

27 February 2014

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KEA PETROLEUM PLC

Notes to the Interim financial statements

for the SIX MONTHS ended 30 november 2013

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 2013.

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 2013 is unaudited. The comparative information for the year ended 31 May 2013 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. The auditor's report on those financial statements was unqualified and did not contain a statement under sections 498(2) or (3) of the Companies Act 2006, but contained an emphasis of matter paragraph on going concern.

b. Going concern

The Group has incurred a loss of £1,063,000 for the period ended 30 November 2013. In common with other junior exploration companies, the Group is reliant on raising further funds periodically through equity finance, including share options and warrants, or possibly debt facilities to achieve its long term objectives.

The Group has signed an agreement to obtain funding through the issue of a series of Convertible Loan Notes, which will raise up to £1,080,000. In addition the Group has agreed a bank facility in order to allow better management of cashflows from the sale of hydrocarbons. Based on the bank facility and the Convertible Loan Notes the directors have prepared operating forecasts which assume a minimum level of expenditure to conform with the requirements of the Group's exploration licences for the next 12 months. These forecasts included significant projected revenue from the Puka wells, currently being tested for commercial production, that would, along with existing cash balances, fund the ongoing programs. These wells have been in production since early September 2013. The Group's cashflow forecasts and projections include certain assumptions in relation to the level of future production and consequent revenues, which can vary due to possible fluctuations in both the oil price and foreign exchange rates.

The directors have concluded that the combination of these circumstances represents a material uncertainty that casts significant doubt upon the group's ability to continue as a going concern. Nevertheless after making enquiries, and considering the uncertainties described above, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the interim accounts.

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. The weighted average number of shares used in calculating the basic earnings per share has been adjusted to remove the shares in issue held by the Employee Benefit Trusts.

3. Share capital

4. Events after the balance sheet date

In December 2013 Kea announced that it had signed a Heads of Agreement with an Australian listed Company with a view to farming into PEP51153.

In December 2013 Kea changed their NOMAD to WH Ireland Limited.

In January 2014 Kea entered into a financing agreement with Darwin Strategic Limited ("Darwin") to issue up to £1.2 million of Convertible Loan Notes at a 10 per cent discount to nominal value. Kea issued 2,823,529 shares to Darwin in settlement of costs for this transaction as well as issuing 12,000,000 warrants to Darwin to subscribe for shares at 2.6563p.

In February 2014 Kea issued a further 19,204,437 shares at 1.041426p per share to Darwin to convert the first tranche of Convertible loan notes.

In February 2014 Kea issued a further 20,000,000 shares at 1.0p per share to Darwin to convert the second tranche of Convertible Loan notes.