Successful Puka 2 Test Results

Kea Petroleum plc

("Kea" or the "Group")

Successful Puka 2 Test Results

Kea Petroleum plc (AIM: KEA), the oil and gas company focused on New Zealand, is pleased to announce successful results from its initial oil production testing at Puka 2.

Encouraging production test results

During the initial clean-up flow period of 5 days, the well achieved an initial oil flow rate of 719 barrels of oil per day (BOPD) with an associated gas flow rate 0.419 million cubic feet per day (MMCFD) on a 22/64" choke over the initial 12 hour flow period. The oil has a density of 38°API and a pour point of 27°C. No formation water was produced during the flow period. The first shipment of oil from Puka 2 was dispatched to market on 31 March 2013.

Well production is now temporarily halted until Sunday 14 April 2013 to establish initial pressure build up.

Forward programme

The current test programme calls for a main flow period up to 45 days followed by a build-up period before continuous production can begin.

Design and construction of the Puka production station is well advanced with commissioning expected during the shut-in period of the Puka 2 test. Kea anticipates to bring Puka 1 online in the latter stages of the Puka 2 test to determine optimum production rates from the two wells.

The initial results of the test confirm the previous log and MDT analysis. Whilst the oil is similar to Puka 1, Puka 2 has considerably better production characteristics with a low gas oil ratio and higher oil flow rates.

Kea has already obtained consents for up to an additional four wells on the current Puka surface location. Following initial interpretation of the Puka 3D Seismic Survey acquired in late 2012, Kea is examining potential well locations to be accessed from the existing surface location as part of the appraisal and development programme for the greater Puka field.

Mauku Update

Drilling at Mauku has reached 2,709m. The total depth is expected to be 3,400m which, on current expectations, should be reached in 7-10 days.

Ian Gowrie-Smith, Chairman of Kea Petroleum, commented:

"We are delighted with these results - a headline flow rate at Puka 2 in excess of 700 BOPD with no water production is excellent. We intend to proceed as quickly as possible in commissioning the production facilities and in further developing the Puka field.

"Kea is now on the threshold of generating a significant revenue stream from Puka. Combined with imminent results from drilling at Mauku, these are exciting times for the Company."

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.

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Notes to Editors:

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