Preliminary Results from Scalybutt-1 Confirm Hydrocarbons

Tap Oil reports that the Scalybutt-1 step out well, located in WA-25-L offshore Australia approximately 1.6 kilometers west of the Woollybutt-2A,ST1 production well, has confirmed the presence of hydrocarbons in the western flank of the producing Woollybutt Oil Field. An 18 meter core has been cut and recovered from the reservoir to provide information on the characteristics of the oil column.

As programmed, the Scalybutt-1 well is currently drilling to total depth before conducting a wireline logging program.

Secondary targets for the Scalybutt-1 well remain to be drilled in the Lower Barrow. The Woollybutt-3 well located 5 kilometers south of the Woollybutt Oil Field intersected a 5.5 meter oil column in Lower Barrow Sands.

Tap is encouraged by the preliminary results of the Scalybutt well. The results from the well may also lead to higher potential in the Woollybutt-3 structure. The Woollybutt-3 well previously discovered an 8.3-meter oil column in Upper Barrow Sands in addition to oil in the Lower Barrow referred to above.

WA-25-L Joint Venture Participants are ENI Australia as operator with 65%; Tap Oil with 15% and Mobil Australia with 20%.