Puka 1 Update and Appointment of Managing Director

Kea Petroleum plc

("Kea" or the "Group")

 Puka 1 Update and Appointment of Managing Director

Kea Petroleum plc (AIM: KEA) today announces that testing operations at the Puka 1 well are commencing following recent inclement weather in the Taranaki region which delayed preparatory works. Richard Parkes has been appointed as Managing Director of Kea Petroleum Holdings Ltd, the principal New Zealand operating subsidiary of Kea Petroleum plc.

Puka 1 Testing

Over the past month in excess of 780mm of rain has fallen in the Puka area delaying preparatory civil works required for testing operations. Recent clear weather has permitted the necessary access road upgrades to be completed and civil works to commence on site and it is now expected that equipment will be mobilised to site commencing today with the initial flow period expected to commence on or about 6 August 2012.

The total flow period of the test is expected to be of the order of 30 days, however the flow period will include regular analysis of the flow characteristics during the test, which may provide opportunities for interim updates. 

Following the Puka-1 test programme, an appraisal programme including both wells and seismic, will be defined and initiated.

Kea announced on 10 April 2012 that Puka-1 had intersected a 40m interval of Mt. Messenger reservoir quality sands with a net pay of between 4.5m and 9m. Kea has not altered its original estimate of gross recoverable resource of one million barrels of oil with a potential upside of up to three million barrels of oil. On 11 June 2012 Kea announced that oil recovered from sampling was excellent quality light oil with a density of 43.7 Degrees API and a relatively low pour point of 15 Degrees Centigrade.

Appointment of Richard Parkes as Managing Director of Kea Petroleum Holdings Ltd

Kea Petroleum is pleased to announce the appointment of Richard Parkes as Managing Director of Kea Petroleum Holdings Ltd, and its subsidiary companies. These companies conduct all of Kea's New Zealand operations. Richard has extensive exploration and operational experience with over 25 years' experience in the upstream Petroleum industry having held numerous technical and senior management positions in companies such as PetroFrontier, Santos, GeoServices and others.

Chairman Ian Gowrie-Smith says "We welcome Richard to the Kea team and believe his diverse experience in frontier exploration and development of conventional and unconventional resources will be a valuable asset to Kea as we look to develop and commercialise our resources."

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.

 To learn more about Kea Petroleum, visit: www.keapetroleum.com or contact:

Notes to Editors:

Kea Petroleum is an AIM listed oil and gas exploration company with interests in four petroleum exploration permits in the Taranaki Basin of New Zealand. Kea listed on the London market in February 2010.