Suriname

Onshore Suriname

Uitkijk and Coronie Blocks (Key 1.75%)

The Company is participating in a multi-well drilling programme in Suriname, through its 50% shareholding in Portsea Oil & Gas Pty Ltd. Key has a 1.75% free carried underlying interest through an agreement with Hardman Oil and Gas Pty Ltd, a company now owned by Tullow Oil plc. Both areas are located adjacent to Suriname's main producing oil fields, Tambaredjo and Calcutta.

Staatsolie Maatschappij Suriname N.V. (Staatsolie) in its 2009 half year report announced that the drilling of 10 wells undertaken in the Uitkijk block to the east of the 1 billion barrel Tambaredjo field had found significant oil reserves. These are currently estimated by Staatsolie to be 7 million barrels. Drilling is being undertaken in Suriname by Tullow Oil in conjunction with Paradise Oil, which is wholly-owned by Staatsolie. Drilling in the Coronie Block is currently planned and could see up to 15 wells being drilled as the joint venture moves to increase its reserves base.

The Tambaredjo Field has been in steady production since 1982 and combined with the Calcutta field has been estimated as containing 1 billion barrels STOIIP of oil. The Calcutta Oil Field is also being developed by the government owned company, Staatsolie Maatschappij Suriname NV, which is also adjacent to Tambaredjo and where successful drilling has resulted in wells being placed on production.

The republic of Suriname is located in northern South America and borders with Brazil to the south, Guyana to the west and French Guyana to the east. To the north is the Atlantic Ocean providing a gateway to the Caribbean and the United States of America.  The systematic search for petroleum began in the early sixties but petroleum development took a leap forward after 1980 when a new petroleum code was enacted and Staatsolie Maatschappij Suriname NV, the State Oil Company of Suriname was formed. In 1992 an oil production plant was established and Staatsolie started commercial petroleum activities with the development of the Tambaredjo Oil Field located approximately 55 km west of the capital city of Paramaribo.

The earning programmes require Tullow Oil plc, to drill up to 25 wells or outlay total expenditure of US$8.5 million, whichever is met first. The US$8.5 million earning programme is being sole funded by Tullow. Suriname is part of the Guyana Basin. Several play types have now been recognized within the existing petroleum system. The Tambaredjo Field produces 16° API oil from this formation and the producing sands have a porosity of 33-42% and high permeability.