Puka

Kea offloading assets, including Puka, as per Notification below on the LSE today.

Sale of Interest in PEP51153

Following an exhaustive marketing exercise conducted on the Company's behalf in the course of the strategic review announced in February 2015, Kea's subsidiary Kea Petroleum Limited has entered into an agreement with Caliera Fund Limited under which Caliera has agreed to acquire KPL's 70% interest in its joint venture with MEO New Zealand Pty Limited regarding PEP51153, the licence which includes the Puka wells and the Shannon prospect. The principal terms of the JV Disposal are as follows:

· Caliera will pay NZ$500,000 (approximately £222,550) for KPL's interest in the JV, payable in cash on completion of the Disposal (less any deposits paid on account as described below);

· Caliera will advance NZ$50,000 (approximately £22,255) against the purchase price provided KPL grants to Caliera as security for the advance a first charge over its assets and an assignment of its interest in the JV. Provided such security is granted Caliera will make further advances to ensure KPL can continue operations prior to completion of the JV Disposal;

· the JV Disposal is conditional upon:

- the waiver by MEO of its pre-emptive rights to acquire KPL's interest in the JV and its consent to KPL giving a first charge over its interest as referred to above;