The Caroil-6 rig had originally been due to arrive at the Nyuni licence to spud the Kiliwani-1 exploration well in August, after it had drilled a development well on the adjoining Song Songo gas field.

But mechanical problems meant it had to be sent away for several weeks to be repaired.

At the time, the JV, which also involves Bounty Oil & Gas, forecast the rig would be available to spud the two offshore wells in the first half of this month.

Then yesterday, Key noted in its quarterly report that the rig was expected to become available at the end of this month, with drilling to follow in mid November.

"The company and its JV partners have made use of the slippage in the rig arrival to renegotiate various contracts and agreements for services, supplies and personnel," Key said.

"This has allowed a number of cost savings to be secured."

The two-well drilling program is designed to test two different hydrocarbon systems within the southern edge of the Mafia Basin.

Key Petroleum, which listed on the Australian bourse in April, will have a 20% interest in the PSC by paying 30% of the cost to drill the two wells.

Fellow Australian junior Bounty will have a 6% stake, while operator Aminex has 39%, RAK Gas has 25% and East Africa Exploration has 10%.

In other company news, Key said its onshore Suriname exploration program – in which it partners Tullow Oil – has made three hydrocarbon discoveries since drilling started in July.

"To date five wells have been drilled and while three have encountered hydrocarbons, no decisions on development or future activities will be possible until the conclusion of the full program," the company said.

The first drilling phase of drilling, comprising up to 10 shallow wells, started in the Uitkijk Block in late July 2007.

Drilling in the Coronie Block is scheduled for later in the fourth quarter of this year.

Key holds a 1.75% in the two blocks.