Our 30% joint venture partner in the Exploration Permit, MEO,...

Our 30% joint venture partner in the Exploration Permit, MEO, has indicated that it may be prepared to contribute toward drilling the prospect. Kea will continue to try to find a farm-in partner to assist in the drilling of Shannon-1 via the formal process previously announced through Rockpoint Corporate Finance Ltd. Nevertheless the funds which we are seeking through our ongoing discussions would be aimed to provide Kea with sufficient capital to drill Shannon-1 independently. Under the terms of the joint venture agreement with MEO, if Kea funds the whole of the drilling, it is primarily entitled to the full benefit of production but MEO has the right at a later date to buy back into the well by reimbursing Kea for its proportionate share of the costs incurred plus a substantial penalty payment.

DOES IT MEAN MEO INCOME WILL HAVE SOME INCOME SOON? " IF THE DRILL IS PRIMARILY PRODUCTION"