announcement

Q U E S T F I N A L I Z E S F I R S T W E L L L O C A T I O N A N D I N D O N E S I A A N N O U N C E S N E W R E F I N E R Y F O R S O U T H S U M A T R A

Highlights
• Quest finalises location for the first well at the Ranau PSC
• Indonesian Government to build a 300,000 BOPD oil refinery in South Sumatra

Quest Petroleum NL (ASX: QPN) is pleased to advise that the Indonesian Government has recently announced that it intends to build a Rp 90 trillion (US$9.5 billion) crude oil refinery in South Sumatra in 2013, in order to meet increasing domestic fuel requirements.

The Government is currently confirming the suitability of the intended location and expect to commence construction of the refinery in 2013, with estimated completion and operation start-up in 2017. The State oil and gas company Pertamina will construct the refinery, which is expected to have capacity of 300,000 barrels of oil per day. The Government’s decision comes as existing refinery capacities in Indonesia are no longer sufficient to meet the soaring levels of oil consumption in the region.

Quest Petroleum is currently preparing to drill its first exploration well in the highly prospective Ranau PSC. The location for the initial well has now been finalised and drilling rigs and materials are being sourced in preparation to drill.

Over the past 12 months exploration in South Sumatra has seen multiple wells with commercial oil and/or gas shows. Several of these discoveries are currently under development with the intention to sell hydrocarbons to domestic and foreign markets. Quest Petroleum Chairman Gus Simpson stated: “The decision to construct a refinery of this scale demonstrates the significant increase in domestic demand for fuels as well as the level of investment the Government is committing to the region. This is a very positive development for the South Sumatran oil industry at a time when Quest is expanding its activity here and preparing to drill at its Ranau PSC”.

Yours Sincerely

Gus Simpson
Chairman

For any further information in respect to the transaction, please contact the Company on +618 9380 9920 or by
email [email protected]