Apache Abandons Taunton-5/5H Appraisal Well

Tap Oil Limited provided the following final update of the Taunton-5/5H well to appraise the Taunton oil field, located in the TL/2 production license and the TP/7 exploration permit.

Location/Proposed Depth

The Taunton Field was discovered in 1991 by the Taunton-1 well. The field is located in the TL/2 production license and extends to the south into the TP/7 exploration permit in the offshore Carnarvon Basin, approximately 24.9 miles north-northeast of Onslow.

Taunton-5/5H was drilled in 66 feet of water as a deviated well in TL/2 to obtain core data through the Early Cretaceous reservoir section. A horizontal well was then drilled into TP/7 to evaluate potential hydrocarbon saturation and reservoir deliverability.

The well has taken 76 days to drill with a true vertical total depth of approximately 4,439 feet with a horizontal well path of approximately 6,562 feet drilled through the Early Cretaceous target formations.

Hydra did not participate in the well, taking Tap’s interest in the well to 13.015 percent. Tap’s cost for the well is expected to be approximately $6.9 million (AUD 7.5 million).

Progress

During the period 0600 hours (AWST) June 21 to 0600 (AWST) June 25, Taunton 5/5H wireline evaluation operations were completed followed by well suspension activities. Mechanical difficulties during the suspension operations resulted in the well being permanently abandoned.

Forward Plan

The well will be abandoned with the well data being incorporated by the Operator into the field geological model to update the oil in place estimates for the Taunton Field.

The Operator - Apache Oil Australia Pty Ltd. - will update the contingent resource estimates for the field and ascertain if a commercial project can be achieved.

Tap Managing Director/CEO Troy Hayden said: “Despite the operational difficulties associated with drilling this lateral well, at this early stage, Tap is pleased with the drilling results at Taunton and is working towards a strategy for commercialization.”