Ppmz,The current target lies 4km away from the producing...

Ppmz,

The current target lies 4km away from the producing Songo-Songo gas field with reserves of 1TCF - 2TCF gas. The Songo-Songo gas pipeline - 230km long and built with World Bank funding in 2003 - connects the gas field to the capital Dar Es Salaam. The partners of the Nunyi JV have Government guaranteed right of access to the pipeline due to the fact that this infrastructure is underutilized.

Although the Kiliwani-1 gas target is modest in reserves, the fact that the consortium will have extremely little capital expenditure to bring the project online makes the project highly appealing.

It looks like Key's Chairman Ted Ellyard has learnt a thing or two from his days at Hardman! His Chinguetti oil discoveries offshore Mauritania were isolated from infrastructure that would facilitate bringing the discoveries online. Key's current projects have been specifically selected with the view to fast-tracking production. Key's Po Valley Borsano permit is also close in proximity to existing infrastructure and the industrial city of Milan.

I would also like to take this opportunity to draw individuals' attention to recent developments involving Key's offshore Lampedusa Permit. Cairn Energy - a member of the FTSE 100 and British oil major - has recently taken over Medoil. As a consequence, Cairn Energy are in posession of the permit directly adjacent to Key's Lampedusa permit. 3D Seismic has already been performed in Cairn's new permit. It looks like Cairn are very confident of the prospectivity of their newly acquired permit.

Cheers,
SS.