drilling approval received

Highlights
? BPMIGAS approves Kayumanis-1 Well AFE, Work Program and Budget
? Target Spud Date for Kayumanis-1 Well set for December 2012
? Approval enables drilling contract to be finalised and all site preparations to be completed
? Kayumanis-1 Prospect target potential up to 59mmbbl or 340Bcf gas
Quest Petroleum NL (ASX:QPN) is pleased to advise that, the Indonesia Energy Regulator, BPMIGAS has approved the
AFE for the Kayumanis-1 Well in the highly prospective Komering Basin, together with Quest’s 2012 Work Plan and
Budget.
These approvals represent a major milestone for the Company and enable negotiations for the drilling contract to be
finalised and executed within the next month. All third party service contracts are being negotiated and materials and
personnel are being mobilised in preparation to commence drilling.
The Kayumanis-1 Prospect is one of 16 leads identified in the Ranau PSC with combined potential of up to 6Tcf gas
and/or 300 mmbbl oil. This prospect is located approximately 10km south of the town of Baradatu in the Way Kanan
jurisdiction of Lampung Province, South Sumatra.
The first drill location is situated on the edge of an identified structural high proximate to three significant sub-basins
with clear potential for hydrocarbon generation.
The target reservoirs are in the Baturaja Limestone and Talang Akar Sandstone Formations which are the most prolific oil
and gas reservoirs in the South Sumatra Basin. The drill site is on well drained, elevated land adjacent to a paved asphalt
road which will facilitate the commencement of drilling and completion.
The Kayumanis -1 Prospect potential is estimated at up to 59mmbbl or 340Bcf gas. Operators in the surrounding PSC’s
have reported initial flow rates of up to 3,000 BOPD from the same formations as those hosting the Kayumanis-1
Prospect. The Company can now also advise that the spud date target is anticipated in December subject to rig
mobilisation and land access agreements.
Based on the results of the Kayumanis-1 Well, two further wells are planned in the initial drilling program. Work is
underway on refining the physical drill locations and further details on these will be released closer to spud date.
Quest Petroleum Managing Director Anthony Milewski stated: “The BPMIGAS approvals are a significant milestone for
the Company and the commencement of drilling is now visible at this highly prospective location.”
Strategic Developments
Quest and PrabuEnergy has developed a three pronged strategy to accelerate its development to a mid-tier oil & gas
producer in Sumatra and West Java. This strategy will leverage the multi-generational, long term relationships that Pak
Thamrin and his family have in Sumatra, Indonesia and in the oil & gas sector. The key points of this plan can be
summarized as follows:-
1. Aggressively explore and develop the Company’s projects in the Ranau PSC;
2. Acquire TAC ‘s and KSO’s with existing production that have a high likelihood of increased production from
further exploration and/or by applying enhanced production work-over techniques; and
3. Conduct joint studies with various Universities on project areas identified by Pak Thamrin’s research and apply
for PSC’s over these areas.
The last year has seen the generation of a further 17 project areas that are currently under review for availability,
prioritisation and fundability.
In addition to this process the Company is also in advanced discussions on several strategic relationships that will see
Quest with greater technical, personnel and funding capability. These arrangements would see the Company having
operational control and a significant retained interest in a number of these project groups whilst avoiding unnecessary
shareholder dilution.
Yours Sincerely
Anthony Milewski