Tap Finalizes Kahili Gas Sales Agreement

Tap reports that final agreements have been executed between the Kahili Joint Venture and NGC New Zealand Ltd (NGC) whereby NGC will purchase all gas produced from the Kahili field, located within the onshore Taranaki Basin in New Zealand.

The Kahili field currently has one production well, which is expected to produce approximately 5 petajoules (PJ) of gas. NGC have agreed to construct, own and operate a separation plant and pipelines to process the raw well stream and to connect the gas to existing NGC infrastructure in Taranaki.

Kahili is Tap's first development project in New Zealand and first gas is expected to be available to the market by mid 2004. Accordingly, this transaction represents an important milestone toward achieving Tap's goal to become a significant explorer and producer in New Zealand.

Kahili Joint Venture Participants (PEP 38736) are Tap Oil with 30%; Austral Pacific Energy with 25%; Millennium Oil & Gas with 25% and IRM (Malaysia) with 25%.