Drilling Commenced at Craigow-1 Well

Tap Oil advised that the Kan Tan IV semi-submersible drilling rig commenced drilling the Craigow-1 well at 03:00 hrs (EST) on December 24, 2010.

The Craigow prospect is an anticlinal trap defined on 3D seismic data, in a good location for both reservoir quality and oil charge. Craigow is estimated to contain mean recoverable oil volumes of 28 million barrels with upside potential for 50 million barrels. A number of follow up prospects (including the previously announced Tolpuddle and Glenbothy prospects) have also been defined on 3D seismic with total potential of over 100 million barrels of recoverable oil in the permit.

Craigow-1 is planned to take approximately 19 days in total. Final total depth will be around 1,826 meters MD. The budgeted well cost is $18 million. Weekly updates will be provided during drilling operations.

Tap Comment

Tap's Managing Director, Troy Hayden, said he was pleased to have commenced drilling the Craigow-1 oil prospect after a long wait for the rig.

"Success at Craigow, being an oil target, could be a lucrative development for Tap. In addition, this would confirm the current geological model and pave the way for the drilling of the Tolpuddle and Glenbothy prospects in the future," Mr. Hayden said.

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