Kairiki Energy Limited (ASX:KIK) Completes Due Diligence On SC 54A And Recieves Cash Payment Of US$3.8 Million

Perth, Nov 16, 2009 AEST (ABN Newswire) - Kairiki Energy Limited (ASX:KIK)(PINK:KAIRF) is pleased to advise that in relation to the Farm-out Agreement with Trafigura Ventures III B.V. (Trafigura) on SC 54A, final legal due diligence has now been completed and a cash payment of US$3.8 million has now been received from Trafigura. With the completion of these conditions, Kairiki is now awaiting final approval from the DOE.

In another significant milestone for the Tindalo development, the operator has confirmed that the SC 54A Joint Venture has concluded an Extended Well Test Agreement (EWT) with the Philippine Department of Energy (DOE). Under the agreement, during the EWT period, the Joint Venture may retain one hundred percent (100%) gross crude proceeds whilst recovering all operating expenses (including development costs) incurred in connection with the EWT. The EWT is for a maximum of 100 days of actual crude flow/production time or one million barrels of crude production, whichever occurs first.

Contact

Laurie Brown Managing Director Kairiki Energy Limited TEL: +61-8-9388-6711