Key Petroleum refers to its ASX announcement dated 29 January 2021 in which it advised that the Company had entered into a Sale and Purchase Agreement and Royalty Deed with Triangle Energy to sell to Triangle Key Petroleum's 50% participating interest in Production Licence L7(R1) and Key Petroleum and Key Midwest’s combined 86.94% interest in Exploration Permit EP 437. A wholly owned subsidiary of Triangle will hold the relevant interests acquired under the Agreement.

During the intervening period the Company and Triangle have been working to complete the necessary regulatory requirements in order that the Department of Mines, Industry Regulation and Safety can effect the transfer of Key’s interests in L7 and EP 437 to Triangle.

Due to a number of delays, Key and Triangle have agreed to further extend the proposed Cut Off date for the Agreement to 31 January 2022 and Triangle has agreed to make a further non-refundable pre-payment of part of the completion payment, of A$100,000.

As stated in the ASX announcement of 29 January 2021, under the terms of the Agreement, after Completion Key retains a 5% gross overriding royalty payable on production from L7 and EP 437.

Key remains an active Australian explorer, with a renewed focus on maturing the east coast gas supply potential from its Cooper-Eromanga Basin assets in Queensland.

KeyFacts Energy: Key Petroleum Australia country profile