chomp..............................., page-19

Rathmore,

I assume you are referring to Nyuni 1/1A wells operated by AMINEX PLC in 2003/2004, in which Bounty Oil & Gas maintained a minority interest. Key Petroleum's independant geologist's report finds that the permeability of the sandstone of the northern portion of the Nyuni Bloc is low, therefore recovery rates are poor. Aminex's efforts here seemed to be doomed from the get-go as they encountered severe difficulties with their drilling apparatus, and were possbily forced to abandon due to these problems. Song-Songo South - which Key is targeting with Kiliwani #1 - does not appear to host the poor sandstone quality common to the norhtern parts. This theory is supported by the production of the 1TCF+ Songo-Songo gas field, only 4km from Key's Kiliwani #1. It is encouraging to see that AMINEX are willing to take a second bite of the cherry with Kiliwani #1 and Kiliwani North #1, participing through wholly owned subsidiary Ndovu Resources. Kiliwani #1 is prospective since 'the holes are appraisal wells on a producing structure rather than a stab in the dark.' Therefore '(CEO)[Ken] Russell holds a "high degree of confidence". (Reference: http://www.theaustralian.news.com.au/story/0,25197,22610302-23634,00.html).

The rig being used is Caroil-6 of French company Caroil. It has recently been exstensivley upgraded, and just successfuly completed an appraisal well in the adjacent bloc.

Key's targets may be 'modest' - as is bandied around all the time on HC - but these 'modest' targets, if achieved - will have a sizeable impact on Key's lowly $20million market cap. SP of AT THE ABSOLUTE LEAST 50c if targets achieved. (See mathematical calulations previously posted by me on HC yesterday).