A$247,053 raised as Key Petroleum reports 2.63 quarters of funding

Eight Queensland Applications Remain Undecided

Key Petroleum Limited (ASX:KEY) spent another quarter waiting for regulatory decisions rather than advancing field activity, with all eight Potential Commercial Area applications covering ATP 920 and ATP 924 still at the decision stage in the Queensland Government’s departmental system.

The company said the Lake Eyre Basin regulatory framework, including restrictions on new petroleum resource activities and approvals, may have contributed to the extended assessment process. Key is continuing discussions with relevant stakeholders, but the timing of any decision remains uncertain. The applications are intended to provide, subject to approval and their terms, a longer-term tenure framework of up to 15 years.

The unresolved approvals are the central operational thread in the quarterly report, following the company’s earlier pending PCA approvals coverage of ATP 920 and ATP 924. Key says it would undertake technical studies, pursue partnerships and explore funding options if the PCAs are approved.

Capital Raising Buys Time, Not Activity

Key raised approximately A$247,053 through a share placement during the quarter, with A$19,000 of transaction costs recorded in the cash flow statement and net financing inflows of A$228,000. The funds are intended for operational requirements, corporate administration, existing projects and potential new business opportunities, after the A$247,053 September placement was completed earlier in the month.

Cash stood at A$329,410.22 at 30 September, compared with A$239,000 at the end of the previous quarter. That improvement came alongside operating cash outflows of A$125,000 and investing outflows of A$13,000, including A$13,000 in loans to other entities. The company reported no exploration and evaluation expenditure, and said no substantive exploration, development or production work took place during the period.

Funding Estimate Highlights Next Capital Decision

Using the quarter’s relevant net outgoings, Key calculated estimated funding of 2.63 quarters. The measure is not a forecast of future spending: it is based on the reported A$125,000 net operating outflow and the cash balance at quarter end. Key said it may pursue further funding, potentially with support from existing shareholders, but acknowledged that any additional funding remains subject to agreement and is not assured.

The company plans to continue seeking PCA decisions, prepare for its 20 November 2026 annual general meeting, investigate partnerships and funding, and plan applications for additional ATP permits. It is also examining renewable energy, solar photovoltaic and other complementary opportunities that could generate cash flow in the near to medium term. The immediate question is whether regulatory progress arrives before another capital decision becomes necessary.