Tap Oil Updates Status of Carnarvon Basin Exploration

Lauda-2, Jane-1, Romulus-1
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Tap Oil provides the following update on the Jane-1, Lauda-1 and Romulus-1 exploration wells which spudded recently offshore Australia.

The Jane-1 well is located in TL/6, and is being drilled from the Agincourt Platform. The bottom hole objective location to intersect the Jane prospect lies approximately 3.4 kilometers north of the Agincourt Platform.

Further drilling difficulties have been experienced within the shallow section above the reservoir target and the well is now being plugged and abandoned with the intention to drill the well at a later date within the current drill program.

The reasons for the drilling difficulties are being fully evaluated and a revised drill program will be determined to enable the Jane-1 well to be drilled at a future time within the current program. These drilling difficulties do not affect the potential of the Jane prospect.

The drilling rig will next be moved to drill the Rose-4 development well also within the HJV.

TL/6 Joint Venture participants Apache Northwest as operator with 68.5%; Tap Oil with 12.2229%; Kufpec Australia with 19.2771%. The Lauda-2 well has penetrated the primary objective of upper Barrow Group sandstones. No potentially commercial hydrocarbon zones were intersected at this level. The well has been deepened as planned to explore several other potential hydrocarbon zones deeper within the Barrow Group. However, the well has encountered drilling difficulties and work is currently in progress to rectify the problems.

Following the discovery of a 6 meter oil column on the Lauda prospect with the drilling of Lauda-1, the Lauda-2 well was designed to explore a separate small structure to the east and downthrown to the Lauda prospect. Once the Lauda-2 well has finalized drilling, the Joint Venture will consider the need to drill a further appraisal well.

The Lauda-1 well is located in WA-290-P approximately 27 kilometers west, northwest of the Woollybutt Oilfield.

WA-290-P Joint Venture participants OMV as operator with 50%; Tap Oil with 25% and Nippon Oil Exploration with 25%.

The Romulus-1 well is located in the Harriet Joint Venture Permit, TL/6, and is being drilled from the South Plato production platform. The objective lies approximately 1.8 kilometers west-northwest from the platform.

Romulus-1 has interseted the target Flag sandstones without encountering commercial hydrocarbons. The well will now be plugged and abandoned.

Romulus-1 is the second well in an intensive drilling campaign of approximately 18 wells for Flag prospects within the HJV. The first well, Albert-1 encountered a 13 meter gross oil column and has been immediately put into production. The next exploration well in this program will be Remus-1.

TL/6 Joint Venture participants are Apache Northwest as operator with 68.5%; Tap with 12.2229% and Kufpec with 19.2771%.

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