Kea Petroleum PLC announced successful results from its initial oil production testing at Puka 2. During the initial clean-up flow period of 5 days, the well achieved an initial oil flow rate of 719 barrels of oil per day (BOPD) with an associated gas flow rate 0.419 million cubic feet per day (MMCFD) on a 22/64" choke over the initial 12 hour flow period. The oil has a density of 38°API and a pour point of 27°C. No formation water was produced during the flow period. The first shipment of oil from Puka 2 was dispatched to market on March 31, 2013. Well production is now temporarily halted until Sunday April 14, 2013 to establish initial pressure build up.

Kea Petroleum PLC announced unaudited consolidated earnings results for the six months ended November 30, 2012. For the period, the company reported revenue of £382,000. Operating loss was £1,464,000 against £1,418,000 for the same period a year ago. Loss before taxation was £1,485,000 against £1,364,000 for the same period a year ago. Loss for the period was £1,485,000 against £1,364,000 for the same period a year ago. Loss per basic and diluted share was 0.29 pence against 0.27 pence a year ago. Net cash flow from operating activities was £1,481,000 against net cash flow used in operating activities of £363,000 for the same period a year ago. Purchase of property, plant and equipment was £74,000 against £5,000 for the same period a year ago. Expenditure on oil and gas exploration assets was £4,065,000 against £2,021,000 for the same period a year ago.

Kea Petroleum PLC announced drilling at Mauku and the completion of drilling prior to testing at Puka. The Icelandic Drilling Odinn rig has commenced drilling operations at Mauku.  Mauku 1 was spudded in January 2013 using Drillforce rig 6 to drill surface hole to a depth of 507m prior to running 13 3/8" surface casing and suspending the well.  Odinn has been moved onto the site and rigged up over the past three weeks and has re-entered the well in preparation to drilling ahead. Mauku is being drilled to a planned total depth of 3,400m and drilling is expected to be completed in April.  Half of the cost of the well is being funded by Methanex as part of the Alliance Agreement between Kea and Methanex. Kea has been involved in extensive farm-out discussions with numerous parties. Although two of these parties have elected not to farm-in, talks are still continuing with multiple parties who have expressed an interest in participating in the well.  However given the advanced status of the well, it will be difficult to conclude the negotiations within the project time constraints. Drilling operations have concluded at Puka with the completion string installed and the well perforated in preparation for testing.   Now that the drilling rig has been demobilised from the Puka location preparatory earthworks and the assembly of surface test equipment, tanks and oil transfer equipment can commence. Testing of Puka 2 is expected to begin in mid-March and will run for between 30 and 45 days.