Kina Petroleum Limited advisesd of its decision to propose to shareholders a scheme of arrangement (the Scheme) to re-domicile the Company to the British Virgin Islands (BVI). Following unanimous agreement of the directors, Kina has entered into a scheme implementation agreement with Kina Petroleum Corporation (KPC), a new holding company incorporated in the BVI. KPC is a newly incorporated company that has been established for the sole purpose of acquiring Kina pursuant to the scheme of arrangement. Under the Scheme, if approved by shareholders, regulators and the courts of Papua New Guinea, KPC will acquire all the ordinary shares in Kina and eligible Kina shareholders1 will receive one share in KPC for every thirty Kina shares held (i.e., a 30:1 share consolidation). KPC will apply to be listed on the ASX and POMSoX and Kina will be contemporaneously de-listed from those same two exchanges. The Scheme will not result in any change to the Kina's operations or the licence interests currently held, and the directors of Kina and KPC are the same. The scheme booklet will outline further details of the Scheme and will include an independent expert's report. The Board believes that the Scheme is in Kina shareholders' best interests and unanimously recommends that shareholders vote in favour of the resolution to approve the scheme. Kina will, in coming days, apply to the PNG courts for approval to send the scheme booklet and other documentation to shareholders, and also for approval to hold a meeting of shareholders to consider the Scheme.