Drilling Report No. 14

DRILLING REPORT NO. 14 FOR DUNNART-2 IN EP437, PERTH BASIN, WESTERN AUSTRALIA FOR THE PERIOD 0600 HOURS 27 AUGUST 2014 TO 0600 HOURS 1 SEPTEMBER 2014
Key Petroleum Limited (“Key”) advises that since its last report, 7” production casing was run to a total depth of 657m RT and cemented to surface. The ‘B’ section production wellhead was installed and DCA Rig 7 released from the Dunnart-2 wellsite. The well is now suspended in a suitable condition to be production tested, subject to an approved program from the Department of Mines and Petroleum.
Analysis and interpretation of formation evaluation data is now being undertaken in conjunction with a completion design to facilitate production testing. Production testing would involve remobilization of a rig to run a completion string in addition to wireline services and the installation of a production Christmas tree. Key is also currently in discussions with other parties for the use of DCA Rig 7 in the Canning Basin this year and possible timing of any production testing on Dunnart-2.
Since the last logging run with the FET tool, it was noted that the main sampling period was curtailed due to a hydraulic tool failure. Two small (50cc) samples of the formation fluid in the top of the interval were recovered prior to this failure and are to be sent to the lab for analysis and then incorporated into all formation evaluation data to determine the forward plan.
The Joint Venture will decide on the next steps for Dunnart-2 once the evaluation is completed. The final Dunnart-2 Drilling Report is now attached.