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Key Petroleum Increasing Interests In Canning Basin Oil And Gas Permits

Key Petroleum (ASX: KEY) is increasing its interests in two onshore Canning Basin oil and gas permits from Emerald Oil and Gas (ASX: EMR) for $50,000 in cash and 4 million Key shares.

This will give the company an additional 24.98% interest in Exploration Permit 104 and a 14.17% stake in Retention Lease 1 within the Lennard North Province.

Following the acquisition, which is conditional upon standard approval by the Western Australia Department of Mines and Petroleum, Key will have a 41.42% interest in EP104 and 30.61% stake in R1.

Lennard Shelf

The Lennard Shelf is separated from the prospective Fitzroy Trough by the Pinnacle Fault System.

It contains gas in low stand deltaic sands in the Lower Anderson Formation extending from Stokes Bay-1 to Point Torment -1 in R1 and south-east to West Kora-1 and Kora-1 in L15 immediately to the east.

Up to 150 billion cubic feet of in-place gas may be trapped along this trend.

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