KEY PETROLEUM LIMITED — Interim / Quarterly Report 2009

Oct 29, 2009

Appendix 5B Mining exploration entity quarterly report

ASX Listing Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Name of entity
Key Petroleum Limited
ACN 120 580 618	Quarter ended (“current quarter”)
120 580 618	30 September 2009

Consolidated statement of cash flows Cash flows related to operating activities Current quarter $A’000 1.1 Receipts from product sales and related debtors - 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration (378) - - (656) 1.3 Dividends received - 1.4 Interest and other items of a similar nature received 28 1.5 Interest and other costs of finance paid - 1.6 Income taxes paid - 1.7 Other (provide details if material) - Net Operating Cash Flows (1,006)	Consolidated statement of cash flows Cash flows related to operating activities Current quarter $A’000 1.1 Receipts from product sales and related debtors - 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration (378) - - (656) 1.3 Dividends received - 1.4 Interest and other items of a similar nature received 28 1.5 Interest and other costs of finance paid - 1.6 Income taxes paid - 1.7 Other (provide details if material) - Net Operating Cash Flows (1,006)
	Current quarter $A’000	Year to date (3 months) $A’000
	- (378) - - (656) - 28 - - -	- (378) - - (656) - 28 - - -
	(1,006)	(1,006)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- (92) (1) - - - - - -	- (92) (1) - - - - - -
	(93)	(93)
	(1,099)	(1,099)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,099)	(1,099)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Share issue costs Net financing cash flows	3,710 - - (4,002) - (54)	3,710 - - (4,002) - (54)
	(346)	(346)
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(1,445) 5,595 (7)	(1,445) 5,595 (7)
	4,143	4,143

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		179
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Item 1.23 includes aggregate amounts paid to directors including consulting fees and superannuation.	salary, directors’ fees,

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	NIL	NIL
	NIL	NIL

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$A’000
	500
	-
Total	500

Reconciliation of cash

Total Reconciliation of cash	Total Reconciliation of cash		500
Reconciliation of cash at the end of the quarter		Current quarter	Previous quarter
(as shown in the consolidated statement of cash		$A’000	$A’000
flows) to the related items in the accounts is as
follows.
5.1	Cash on hand and at bank	872	773
5.2	Deposits at call	3,271	4,822
5.3	Bank overdraft
		-	-
5.4	Other (provide details)
		-	-
	Total: cash at end of quarter(item 1.22)	4,143	5,595

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter

• See chapter 19 for defined terms.

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Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

dates.
	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	119,314,046	119,314,046
	33,314,041	33,314,041
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired/cancelled during quarter	5,000,000 550,000	Nil Nil	Exercise price 50 cents 20 cents	Expiry date 30 November 2010 30 November 2010
	200,000	Nil	20 cents	30 November 2010
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does ~~/does not*~~ (delete one) give a true and fair view of the matters disclosed.

Sign here: (Company secretary)

Date: 30 October 2009

Print name: John Ribbons

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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