Tarantula 1 Well - Update

Origin Energy provides an update to earlier reports regarding the incident that occurred at the drilling location of the exploration well Tarantula 1 in the Perth Basin, Western Australia on the morning of Thursday June 10, 2004.

The site remains stable with gas and water continuing to flow to atmosphere through the drill pipe and a water deluge system in place to minimize the risk of ignition.

A team of well-control experts has been on site since Saturday afternoon and has finalized procedures to re-establish control of the well. Equipment required for this operation has been sourced and is expected to be on site by the end of this week. A carefully supervised operation to re-establish control of the well will then be undertaken.