Energy
Key Petroleum Limited (KEY)
Key Petroleum Limited (ASX: KEY) is an Australian-based energy company primarily focused on the exploration and development of oil and gas assets within onshore basins, notably in areas like the Cooper/Eromanga and Surat Basins. The company aims to identify and unlock hydrocarbon potential through targeted exploration programs, seeking to define commercially viable resources within its permit portfolio.
Market Cap
A$2M
Shares on Issue
N/A
Price Chart
AI Analysis
Key Petroleum, with its A$2 million market capitalization, is positioned as a highly speculative micro-cap energy explorer on the ASX. Its current business is centered on maintaining and progressing its exploration permits, particularly in established hydrocarbon regions like the Cooper/Eromanga and Surat Basins, often involving geological and geophysical studies and potentially preparing for drilling campaigns. Financial performance is typically characterized by exploration expenditure, cash burn, and reliance on capital raisings, rather than revenue from production.
The growth outlook for KEY is intrinsically linked to exploration success and the de-risking of its identified prospects within its permit areas. Upcoming catalysts would likely include announcements regarding drilling results from key wells, interpretations of seismic survey data, farm-out agreements to secure funding for further exploration, or updates on permit renewals and farm-in opportunities. The company's strategic direction would be focused on proving up commercially viable hydrocarbon resources and attracting partners to fund their development, aiming to transition from explorer to a potential developer or producer.
Bull Case
- • Successful drilling campaign yielding a significant commercial hydrocarbon discovery within one of its key permit areas.
- • Securing a substantial farm-out agreement or joint venture with a larger industry player, providing funding and de-risking further exploration.
- • A sustained increase in global oil and gas prices, significantly enhancing the economic viability of its undeveloped resources.
Bear Case
- • Unsuccessful drilling results leading to the abandonment or write-down of key exploration permits and significant capital losses.
- • Inability to secure sufficient funding through capital raisings or farm-out deals, hindering the progress of exploration and development activities.
- • Adverse regulatory changes or sustained low commodity prices making exploration and potential development uneconomic for its projects.
Recent Announcements
Quarterly Activities/Appendix 5B Cash Flow Report
🚨 Price SensitiveKey's quarterly report reveals a detailed cash flow analysis, indicating the company’ end-of-quarter financial health and liquidity. Investors are advised to review this information for investment decision-making purposes.
Initial Director's Interest Notice
Director Appointment
🚨 Price SensitiveKey Holdings Ltd has appointed John Smith as a new director, effective immediately; shareholders are invited to review the appointment details at their earliest convenience.
FAQs
What does KEY do?
Key Petroleum Limited is an Australian oil and gas exploration company primarily focused on identifying and developing hydrocarbon resources within its permit portfolio, particularly in onshore basins such as the Cooper/Eromanga and Surat Basins.
Is KEY a good investment?
Investing in KEY is highly speculative due to its micro-cap status and reliance on exploration success. While a significant discovery could lead to substantial returns, the risks include drilling failures, funding challenges, and commodity price volatility inherent in the energy exploration sector.
What drives KEY's share price?
KEY's share price is primarily driven by exploration news, such as drilling results (positive or negative), seismic data interpretations, and updates on resource estimates. Major catalysts also include farm-out agreements, capital raisings, and broader movements in global oil and gas prices.
Key Metrics
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