Key Petroleum Holds A$136K Cash, Plans Share Issuance to Fund Cooper-Eromanga Projects
Key Petroleum Limited progresses its Potential Commercial Area applications in Queensland’s Cooper-Eromanga Basin, anticipating government approval by year-end, while planning a capital raise to bolster its limited cash reserves.
- Eight PCA applications remain under government consideration with expected approval by end 2025
- Company holds 100% interest in ATP 920 and ATP 924, with Pancontinental earning minority stakes
- Limited cash on hand at A$136,295, prompting planned share issuance in early 2026
- New Company Secretary appointed following retirement of predecessor
- Payments of $35,000 made to related parties during the quarter
Progress on PCA Applications
Key Petroleum Limited continues to advance its strategic interests in the Cooper-Eromanga Basin, Queensland, with eight Potential Commercial Area (PCA) applications across ATP 920 and ATP 924 still under government review. According to the Department of Natural Resources and Mines (DNRM), these applications remain at the decision stage, with formal approval anticipated by the end of 2025. Securing these PCAs would grant the company two permits, each with a 15-year term, providing a stable platform for development planning and partner engagement.
Corporate Developments and Governance
During the quarter, Key Petroleum successfully conducted its Annual General Meeting, where all resolutions were approved, followed by a board meeting to assess 2025 performance and strategise for 2026. A notable governance update was the appointment of a new Company Secretary in December 2025, bringing legal and financial expertise to support the company’s operations after the retirement of the former secretary.
Financial Position and Capital Strategy
Financially, Key Petroleum reported a modest cash balance of A$136,295 at the end of December 2025. The company acknowledges this limited liquidity and has flagged a planned share issuance in early 2026 aimed at raising additional capital to fund ongoing operations and project development. Discussions are underway with three interested parties, although the outcome remains uncertain. The company emphasises prudent cost management and shareholder support as critical to sustaining operations during this period.
Operational Outlook
Looking ahead, Key Petroleum intends to actively engage with government departments to expedite PCA approvals and, upon success, promptly initiate technical studies and financing preparations. The company’s 100% interest in ATP 920 and ATP 924 remains intact, with Pancontinental Oil and Gas NL earning minority interests under existing farmin agreements. These developments underscore Key Petroleum’s commitment to responsibly advancing its assets while adapting to evolving regulatory frameworks.
Payments and Governance Transparency
During the quarter, Key Petroleum disclosed payments totaling $35,000 to related parties, including directors’ fees and corporate administration costs. This transparency aligns with ASX governance standards and reflects ongoing corporate oversight amid the company’s operational and financial challenges.
Bottom Line?
As Key Petroleum awaits crucial PCA approvals, its ability to secure additional funding will be pivotal in shaping its next phase of growth.
Questions in the middle?
- When exactly will the government formalise approval of the PCA applications?
- How successful will the planned early 2026 share issuance be in alleviating funding constraints?
- What are the potential impacts on project timelines if PCA approvals are delayed?
