Kingsway Oil was originally incorporated in 2001 specifically to undertake exploration of the Canning Basin, Western Australia.  Kingsway has been actively exploring in the Canning Basin since 2003.  The company currently owns permits or has applications pending under various arrangements, over some 78,407 sq km within the central and southern Canning Basin. The cumulative prospective resource potential is 272 MMbbl.

Kingsway has adopted an exploration methodology that utilises airborne magnetic data to identify structural closures and magnetotelluric (MT) data to help locate potential hydrocarbon-bearing zones and to provide a predicative tool for reservoir quality.  This methodology was applied at the Sally May-1 well location prior to drilling and Kingsway have stated that their predictions were consistent with the well results.  Kingsway drilled the Sally May-1 exploration well in EP429 in early 2005.  The well encountered good oil shows in the Ordovician Nita Formation within the aerially extensive Sally May anticline.  The structure has a prospective resource potential of between P90 - 2MMbbl and a P10 - 139MMbbl; the mean prospective resource potential volume is 65MMbbl.  The probability of geological success is estimated at 32%.