KEY PETROLEUM LIMITED — AGM Information 2014

Nov 19, 2014

Ground Floor 39 Stirling Highway Nedlands WA 6009

==> picture [182 x 60] intentionally omitted <==

T: + 61 (08) 6389 0322 F: + 61 (08) 6389 0697

20 November 2014

The Manager The Australian Securities Exchange The Announcements Officer Level 4/20 Bridge Street SYDNEY NSW 2000

Dear Sir

ANNUAL GENERAL MEETING – MANAGING DIRECTORS OVERVIEW

We attach herewith the Managing Directors Overview which will be presented to the Shareholders of Key Petroleum Limited at today’s Annual General Meeting.

Regards

IAN GREGORY Company Secretary KEY PETROLEUM LIMITED

==> picture [511 x 55] intentionally omitted <==

==> picture [367 x 121] intentionally omitted <==

Ground Floor 39 Stirling Highway Nedlands WA 6009 T: + 61 (08) 6389 0322 F: + 61 (08) 6389 0697

==> picture [720 x 23] intentionally omitted <==

Managing Director’s Overview

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

Disclaimer and Competent Person’s Statement
----- End of picture text -----

Disclaimer

The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions, investors should rely on their own examination of Key Petroleum Ltd and consult with their own legal, tax, business and/or financial advisors in connection with any acquisition of securities.

The information contained in this presentation has been prepared in good faith by Key Petroleum Ltd. However, no representation or warranty, expressed or implied, is made as to the accuracy, correctness, completeness or adequacy of any statement, estimates, opinions or other information contained in this presentation.

Certain information in this presentation refers to the intentions of Key Petroleum Ltd, but these are not intended to be forecasts, forward looking statements, or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties, and other factors that may cause Key Petroleum Ltd’s actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, Key Petroleum Ltd, its directors, officers, employees and agents do not give any assurance or guarantee that the occurrence of events referred to in this presentation will occur as contemplated.

Competent Person’s Statement

Information in this booklet relates to information compiled by Mr Kane Marshall. Kane Marshall is a Practicing Petroleum Engineer and holds a BSc (Geology), a BCom (Inv & Corp Fin) and a Masters in Petroleum Engineering.

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

Board and Management	Board and Management	Board and Management
		Managing Director	Mr Kane Marshall
			Petroleum Engineer BSc (Geology), BCom (Corp. Finance) & MPetEng
		Non- Executive Chairman	Mr Rex Turkington
			BCom(Hons), BCA, GAICD, AAFSI, ADA1 (ASX)
		Non-Executive Director	Mr Dennis Wilkins
			Accountant BBus, ACIS, AICD
		Non-Executive Director	Ms Min Yang
		Non-Executive Director	Mr Geoff Baker
		(Alternate for Ms Min Yang)	BCom, LLB and MBA
		Company Secretary	Mr Ian Gregory
			BBus, FCIS, FCSA, F Fin, MAICD
		Chief Financial Officer	Mr Rob Ierace
			BCA, GIA, BCom

==> picture [720 x 68] intentionally omitted <==

----- Start of picture text -----

Company Overview
----- End of picture text -----

Key Petroleum Ltd (“Key”) is focused on exploration in both the North Perth and Canning Basins in Western Australia which have proven petroleum systems with the potential for both conventional and unconventional oil and gas opportunities.

Shares on Issue	567,427,487
Share Price	1.0c
Market Capitalisation	AU$ 6 million
Assets/Cash Position 31/09/14	AU$ 2.7 million
Major Shareholders	Holding %
ASF Oil & Gas Holdings Pty Ltd	19.90
Supermax Pty Ltd	4.80
First Super Technology Limited	4.58
Forever New Limited	4.58
Jerele Mining Pty Ltd (and associates)	4.10
JL Kane Marshall (and associates)	3.56

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

Share Price Movement – 6 Months
----- End of picture text -----

==> picture [470 x 323] intentionally omitted <==

Key Petroleum Limited ASX 200 - Energy Sector

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 68] intentionally omitted <==

----- Start of picture text -----

Highlights 2013/2014
----- End of picture text -----

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

==> picture [11 x 12] intentionally omitted <==

Acquisition of participating interests in EP104 and R1

– Perth Basin Exploration Permit EP437 Key assumes operatorship

Completion of Curtly Geochemical Survey over Canning Basin Permit EP448

Preferred Bidder for Canning Basin Application Area L12-10 in southern Canning Basin

Key and Indigo Oil Pty Ltd, acquire Buru Energy Limited’s interest in Retention Lease R1 and Production Licence L15

Cornerstone investment by ASF Group Limited

• Rey Resources Limited farms in to Exploration Permit EP437

Drilling of Exploration Permit EP437 commences with Dunnart-2 suspended for production testing

==> picture [256 x 341] intentionally omitted <==

Key Managing Director, Kane Marshall, with DCA Rig Manager, Mr Trevor Iley, on site at Dunnart-2

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

Current Outlook and Strategic Focus
----- End of picture text -----

==> picture [11 x 11] intentionally omitted <==

Execute operated exploration activities in EP437 and R1

==> picture [11 x 11] intentionally omitted <==

Strategically positioned acreage is close to ports and coastal towns in known oil and gas provinces

==> picture [11 x 11] intentionally omitted <==

• Dunnart, Wye Knot and Conder South prospects located 4-5 hour drive by truck from Kwinana refinery with economics of circa $85-90 per barrel (after lifting cost)

==> picture [11 x 11] intentionally omitted <==

• EP448 mature prospects are 7 hours by truck from Broome port with any future crude export from Wyndham, Derby or Broome ports to Singapore

==> picture [11 x 11] intentionally omitted <==

• EP104, R1 and L15 located between Broome and Derby with Anderson Formation leads located within 25 kilometres of Derby port

==> picture [11 x 11] intentionally omitted <==

• Focus on new business opportunities including acreage gazettal participation in younger sedimentary basins internationally and domestic opportunities aligned with current portfolio of interests

==> picture [11 x 11] intentionally omitted <==

• Reputation as a low cost, safe and environmentally responsible Operator based on its track record of operations in Western Australia

==> picture [11 x 11] intentionally omitted <==

• Exploration focus in 2015 is on conventional oil projects given current oil price volatility and its impact on value in unconventional projects

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

Exploration Permit EP437 – Perth Basin, Western Australia
----- End of picture text -----

Highlights

• Farmout of EP437 to Rey Resources Limited with Key retaining an equity position of 43.47%

==> picture [10 x 10] intentionally omitted <==

• Successful drilling of Dunnart-2 Commitment Well without incident and under budget

==> picture [10 x 10] intentionally omitted <==

• Live oil shows encountered in Bookara Sandstone and through to basement section

==> picture [10 x 10] intentionally omitted <==

• Identification of several high impact prospects Dunnart, Conder South and Wye-Knot in main migration pathway identified at Dunnart

==> picture [10 x 10] intentionally omitted <==

• Exploration Permit Renewal granted by Department of Mines and Petroleum (“DMP”)

==> picture [10 x 10] intentionally omitted <==

Looking Forward

• Planning of production testing with small completion rig to commence after peak fire season

==> picture [10 x 10] intentionally omitted <==

==> picture [225 x 291] intentionally omitted <==

Wellsite Geologist Len Diekman collecting live oil samples from the shale shakers during drilling operations

==> picture [10 x 10] intentionally omitted <==

==> picture [10 x 10] intentionally omitted <==

• Commence formal discussions with land owners over the Conder South and Wye Knot prospects for land access

• Progress funding discussions with Joint Venture participation for exploration drilling

EP437 Permit Interest	EP437 Permit Interest
Key Petroleum Limited	43.47%
Rey Resources Limited	43.47%
Caracal Exploration Pty Ltd	13.06%

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

EP437 Dunnart-2 Drilling Operations

==> picture [373 x 280] intentionally omitted <==

==> picture [306 x 256] intentionally omitted <==

==> picture [114 x 156] intentionally omitted <==

==> picture [213 x 156] intentionally omitted <==

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

EP437 – Dunnart-2 Results
----- End of picture text -----

Results to Date

• Drilling into top of Bookara sandstone resulted in visual oil in cuttings (right) over shale shakers with distinct ‘crude odour’

==> picture [9 x 9] intentionally omitted <==

• Top Bookara Sandstone is interpreted to be excellent reservoir quality with 20% porosity or more consistent with beach sand systems

==> picture [9 x 10] intentionally omitted <==

• Oil fluid from cuttings has been collected and currently being evaluated in the lab as part of regional prospectivity analysis

==> picture [9 x 10] intentionally omitted <==

• Bright yellow florescence occurred over a 20 metre section including in fractured section of basement

==> picture [9 x 9] intentionally omitted <==

• Current evaluation includes this basement section as an unconventional granite wash play analogous to very large plays in North America

==> picture [9 x 9] intentionally omitted <==

• Large 11 square kilometres Conder South structure on trend from Dunnart which has demonstrated a large amount of oil has migrated through this part of the Perth Basin

==> picture [9 x 9] intentionally omitted <==

• Open hole drill stem tests are not a suitable method of evaluation in Triassic Bookara reservoirs due to the difficulties of the overlying Kockatea Shale (tool plugging)

==> picture [9 x 9] intentionally omitted <==

• Electric log responses with Dunnart-1 are consistent with the exception of the top Bookara Sandstone in Dunnart-2 where a mix of filtrate, formation water and oil was recovered on wireline test. This suggests the top of the sandstone was invaded with drilling fluid

==> picture [9 x 9] intentionally omitted <==

==> picture [256 x 341] intentionally omitted <==

Live oil (in brown with halo in foreground and background) running into sump and being collected from ditch cuttings and mud into cups below the shale shakers

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

EP437 – Production Testing
----- End of picture text -----

Planning

• Planning is underway for testing through a completion string with pressure gauges to gain information about reservoir quality

==> picture [9 x 10] intentionally omitted <==

• Completion string to be designed to have flexibility for future artificial lift installation (pumping) if any extended testing is required for future production license applications

==> picture [9 x 9] intentionally omitted <==

• Testing to be conducted into tanks to facilitate fluid analysis at a later date

==> picture [9 x 10] intentionally omitted <==

• Planning is being conducted for the use of a small completion rig with necessary bridging documentation being prepared for DMP health and safety and environmental approvals

==> picture [9 x 9] intentionally omitted <==

• Site has been cleared up and cuttings from sump analysed for contaminants

==> picture [9 x 10] intentionally omitted <==

• Fire break to be installed around the site with the onset of the fire season

==> picture [9 x 9] intentionally omitted <==

Timing

• Approvals typically take up to three months with the DMP with documentation being prepared for lodgement by year end to facilitate testing after the fire season in March/April 2015

==> picture [9 x 10] intentionally omitted <==

• Concurrent discussions on land access for follow up drilling are taking place for Wye Knot and Conder South activities

==> picture [9 x 10] intentionally omitted <==

==> picture [275 x 366] intentionally omitted <==

Key operational personnel watched with excitement as visual signs of oil came over the shale shakers with a distinct crude odour in the first metre of drilling into the Bookara sandstone at Dunnart-2

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

EP437 – Prospects
----- End of picture text -----

==> picture [322 x 313] intentionally omitted <==

Wye Knot Prospect

• Three way dip closed anticline with fault seal and located approximately 10 kilometres west of Mount Horner oilfield and up-dip from Dongara Oil and Gas Field

==> picture [9 x 10] intentionally omitted <==

• Has best estimate prospective resources of 5 million barrels

==> picture [9 x 10] intentionally omitted <==

• Drilling of Wye Knot-1 would assess Jurassic, Triassic and Permian oil objectives down-dip from the Wye-1 gas discovery well

==> picture [9 x 10] intentionally omitted <==

• Good hydrocarbon shows were noted in younger Jurassic sands and in the Aranoo sands within the Kockatea shale

==> picture [9 x 10] intentionally omitted <==

Conder (Conder South)

• Conder South structure is the largest structure in the permit having a mid case closure of 11 square kilometres

==> picture [9 x 9] intentionally omitted <==

• Offset wells Conolly-1 and Conder-1 contained oil shows in the Bookara sandstone

==> picture [9 x 9] intentionally omitted <==

Regional map of EP437 and currently defined prospects and leads

==> picture [9 x 9] intentionally omitted <==

• Conolly-1 has oil shows in younger Cadda Formation which could be indicative of oil being leaked off from Conder South and Dunnart

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

EP437 – Wye Knot Prospect
----- End of picture text -----

==> picture [477 x 326] intentionally omitted <==

Seismic cross section running south to north

Top Bookara aerial closure

==> picture [180 x 209] intentionally omitted <==

Wye-1 discovery well logs

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

EP437 – Conder South Prospect
----- End of picture text -----

==> picture [305 x 161] intentionally omitted <==

Seismic cross section running south to north, including proposed Conder South-1 well

==> picture [306 x 195] intentionally omitted <==

==> picture [365 x 337] intentionally omitted <==

Top Bookara Formation depth map – Conder South (circled in red)

Top Bookara Sandstone contours, Conder South-1 to Conder-1

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

Exploration Permit EP448 and Application Area L12-10
Canning Basin, Western Australia
----- End of picture text -----

Highlights

• Completion of 200 square kilometre geochemical soil survey without incident and under budget

==> picture [10 x 10] intentionally omitted <==

• Identification of high propane anomalies where little seismic defines leads in Darriwell Project area

==> picture [10 x 10] intentionally omitted <==

• Integration of seismic and geochemical results identified Patterson and Griffith prospects on trend from geochemical anomalies

==> picture [10 x 10] intentionally omitted <==

• Griffith and Patterson are fault bound prospects with 30 and 14 million barrels un-risked best estimate prospective resource respectively

==> picture [10 x 10] intentionally omitted <==

• Completion of Flora and Fauna Survey over Griffith and Paterson well locations

==> picture [10 x 10] intentionally omitted <==

• Good faith Native Title negotiations commenced on L12-10

==> picture [10 x 10] intentionally omitted <==

• Twelve month permit extension granted by DMP on EP448

==> picture [10 x 10] intentionally omitted <==

Looking Forward

• Progress negotiations with Traditional Owners budgets and timing for heritage clearances have not yet been agreed on EP448

==> picture [10 x 10] intentionally omitted <==

• Continue discussions with potential farmin partners for well or seismic and a well

==> picture [10 x 10] intentionally omitted <==

==> picture [182 x 252] intentionally omitted <==

Geochemical Consultant, Dr John Conolly – Curtly Geochemical Survey

EP448 Permit Interest	EP448 Permit Interest
Key Petroleum Limited	78.00%
Indigo Oil Pty Ltd	22.00%
L12-10 Permit Interest
Key Petroleum Limited	100%

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

EP448 Curtly Geochemical Survey

==> picture [331 x 248] intentionally omitted <==

==> picture [208 x 277] intentionally omitted <==

==> picture [160 x 130] intentionally omitted <==

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

EP448 Flora and Fauna Survey

==> picture [327 x 245] intentionally omitted <==

==> picture [348 x 216] intentionally omitted <==

==> picture [277 x 210] intentionally omitted <==

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

EP448 - Prospects
----- End of picture text -----

==> picture [294 x 309] intentionally omitted <==

Locations of Griffith and Paterson prospects

==> picture [340 x 259] intentionally omitted <==

Magnetic regional map showing location of EP448 and L12-10

==> picture [359 x 98] intentionally omitted <==

Regional Key geological model showing oil source from trough area into Darriwell project area

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

EP448 – Griffith Prospect
----- End of picture text -----

==> picture [275 x 388] intentionally omitted <==

Area closure sizes for Griffith prospect

==> picture [302 x 180] intentionally omitted <==

Regional cross section from Griffith feature (left) through to discovery wells (right) including Leo-1, Cudalgarra-1 and Great Sandy-1

==> picture [233 x 210] intentionally omitted <==

Proposed Griffith-1 well into Griffith structure

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

EP448 – Paterson Prospect
----- End of picture text -----

==> picture [312 x 188] intentionally omitted <==

Zoomed in section at Paterson area though to Dariwell-1

==> picture [312 x 174] intentionally omitted <==

==> picture [278 x 394] intentionally omitted <==

Seismic line from Patterson to Great Sandy-1 discovery

Area closure sizes for Patterson and Patterson West

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

Exploration Permit EP104, Retention Lease R1 and
Production Licence L15 - Canning Basin, Western Australia
----- End of picture text -----

Highlights

Evaluated well intervention options in Point Torment-1 and Stokes Bay-1

==> picture [10 x 11] intentionally omitted <==

Identified possible oil zone in Point Torment-1 (deltaic units)

==> picture [10 x 11] intentionally omitted <==

EP104 Permit Interest	EP104 Permit Interest
Key Petroleum Limited	53.97%
Pancontinental Oil & Gas NL	19.59%
FAR Limited	15.67%
Indigo Oil Pty Ltd	10.77%

Budgeted remediation of access causeways to conduct well integrity checks and access for future workover rig options

==> picture [10 x 11] intentionally omitted <==

Looking Forward

Planning and commencement of remediation activities for two areas in R1 and one in L15

==> picture [10 x 11] intentionally omitted <==

R1 Permit Interest	R1 Permit Interest
Key Petroleum Limited	65.23%
Indigo Oil Pty Ltd	14.77%
Pancontinental Oil & Gas NL	11.11%
FAR Limited	8.89%

==> picture [10 x 11] intentionally omitted <==

Commence planning of workover and exploration activities in R1 and L15 (testing)

==> picture [10 x 11] intentionally omitted <==

==> picture [10 x 11] intentionally omitted <==

==> picture [10 x 11] intentionally omitted <==

Determine economic viability of restoring West Kora-1 oil production into nearby Broome or Derby offtake routes

Continue discussions with potential farmin partners

Finalise 2015 exploration campaign

L15 - Permit Interest	L15 - Permit Interest
Key Petroleum Limited		61.40%
Indigo Oil Pty Ltd		14.60%
Pancontinental Oil & Gas NL		12.00%
FAR Limited		12.00%

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

EP104, R1 and L15 Prospects
----- End of picture text -----

==> picture [210 x 157] intentionally omitted <==

The original causeway at Stokes Bay-1 across tidal flats

==> picture [293 x 208] intentionally omitted <==

Location of EP104, R1 and L15

==> picture [300 x 391] intentionally omitted <==

West Kora-1 Production Facilities

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

R1 – Point Torment
----- End of picture text -----

==> picture [237 x 330] intentionally omitted <==

Point Torment-1 well log including shows

Deltaic C Sand

2025.40-2029.66m Net Pay 2.74m Average Porosity 12.2

• Shows in well – not tested

Deltaic B Sand

2043.10-2057.40m Net Pay 13.90m Average Porosity 12.5

• Oil shows in well, not tested, possible oil flow zone during 1996 workover

==> picture [294 x 176] intentionally omitted <==

Point Torment-1 geological model

==> picture [293 x 189] intentionally omitted <==

Point Torment-1 discovery well

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

R1 – Stokes Bay
----- End of picture text -----

Seismic Line F84A-932

==> picture [330 x 249] intentionally omitted <==

==> picture [344 x 208] intentionally omitted <==

Viewing north (left) to south (right) the wells in the Lennard Shelf trend that have had either oil and gas shows or flowed hydrocarbons to surface

Valentine-1 and stokes bay-1 wellbores on seismic line F84-932

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [720 x 67] intentionally omitted <==

----- Start of picture text -----

2014/2015 - Looking Ahead
----- End of picture text -----

==> picture [15 x 16] intentionally omitted <==

Company continues to be active in new venture evaluation as it seeks ‘third limb’ assets to portfolio

==> picture [15 x 16] intentionally omitted <==

Technical evaluations on all assets are being concluded and planning of operational activities in 2015 is underway after the fire season in the Perth Basin and after the wet season in the Canning Basin

==> picture [15 x 16] intentionally omitted <==

Plan to conduct two testing programs in 2015 (Dunnart-2 in Perth Basin and Point Torment-1/Stokes Bay-1 in the Canning Basin)

==> picture [15 x 16] intentionally omitted <==

==> picture [15 x 16] intentionally omitted <==

Key theme for 2015 is continuing activity while maintaining prudent – capital management rising costs in WA industry due to increased regulation and cost recovery have stifled oil and gas investment onshore 2014 has been more challenging than 2013 for small to mid cap oil and has met that the gas exploration companies, Key challenge by being most active junior oil and gas company in WA in the last two years

==> picture [705 x 5] intentionally omitted <==

==> picture [105 x 33] intentionally omitted <==

==> picture [366 x 122] intentionally omitted <==

For further information please contact Mr Rex Turkington or Mr Kane Marshall

+61 8 6389 0322

==> picture [700 x 222] intentionally omitted <==