Puka Testing and Strategic Review

For Immediate Release 3 September 2013

Kea Petroleum plc

("Kea" or the "Company")

Puka Testing, Relinquishment of PEP51155 and Strategic Review

Kea Petroleum plc (AIM: KEA), the oil and gas company focused on New Zealand, announces further results of testing and flow rates at Puka, the decision not to renew the PEP51155 permit and the commencement of a strategic review process.

The Directors are pleased to advise that combined total flow rates at Puka 1 and Puka 2 have stabilised at approximately 200 barrels of oil per day ("BOPD").

Following processing and interpretation of the recently acquired Uruti 2D Seismic, inadequate seismic quality over Angus and a diminished appetite for deep gas plays, Kea undertook a prospectivity review of the PEP51155 permit. Kea has elected not to extend the term of PEP51155 for a further 5 years and therefore will not be drilling Angus.

Testing of Puka

Testing operations are continuing at Puka with both Puka 1 and 2 wells undergoing periods of flow and buildup over the past two and a half months. As a result of test analysis, and to reduce issues associated with wax formation affecting flow, artificial lift was recently installed on Puka 2.

A considerable number of issues have dogged the achievement of anticipated flow rate levels. Puka 1 and Puka 2 are entirely different in character. Puka 2 had to move to artificial lift; equipment had to be moved from the Wingrove site and altered to specification; and the site had to be expanded to accommodate production and ease of production off take.

Kea is currently undertaking further analysis of well data and seismic interpretation, in addition to ongoing work on a field development plan and currently anticipates drilling a third appraisal well, Puka 3, in Q1 2014.

Produced Volumes

A total of 5,049 barrels of oil and 101.52 million cubic feet of gas have been produced since the most recent phase of testing began in July. Following the installation of artificial lift and the beginning of commingled production, current combined flow rates for Puka 1 and Puka 2 are 200 BOPD and 2.4 million cubic feet per day of gas.

Commingled flow rates on artificial lift, with varying pump rates, have only been achieved for 13 ½ days, producing in total 2,837 barrels of oil.

Review of Strategic Options

The Directors believe that the scale of the Puka discovery, and the current challenges for small sized oil explorers in accessing capital markets, merit a review to assess strategic alternatives that will enable shareholders to maximise full value from the Puka fields. In addition the Company has received some interest from a number of larger companies in the potential to participate in the development of Puka and some of the Company's other exploration prospects. In this regard, the Company appointed Gresham Advisory Partners Ltd in Sydney. This review is in its early stages and further announcements will be made as and when appropriate.

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.

For further information please contact:

Kea Petroleum plc

David Lees, Executive Director Tel: +44 (0)20 7340 9970

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 5000

Mark Court

Sophie Cowles

Notes to Editors:

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