For Immediate Release 10 January 2014 Kea Petroleum plc

("Kea" or the "Company")

Issue of Convertible Loan Notes and Equity Finance Facility

Kea Petroleum plc (AIM: KEA), the oil and gas company focused on New Zealand, is pleased to announce that it has entered into an agreement with Darwin Strategic Limited ("Darwin") to issue up to £1.2 million of Convertible Loan Notes ("CLNs"). Kea has also signed an equity finance facility ("EFF") of up to £5.0 million with Darwin.

Convertible Loan Notes

A first tranche of £200,000 of CLNs has today been issued, in integral units of £50,000 at a price of
£45,000 per unit. Darwin has agreed to subscribe for up to an additional £1.0 million loan notes of principal value for a consideration of £900,000. The remaining CLNs will be issued in five equal tranches of £200,000 in integral units of £50,000 at a price of £45,000 per unit. Each tranche will be made available at intervals of 25 trading days, commencing on 14 February 2014 with the final investment expected to be made on 10 July 2014.
The CLNs are convertible into Ordinary Shares of the Company ("Shares") at Darwin's option at the lesser of 3 pence per Share, or 94% of the volume