Tap Oil Says Tawatawa-1 Drilling Ahead

The Tawatawa-1 well located in PEP 38333, offshore New Zealand, has completed a basic intermediate logging program at 1,172 meters as planned. This basic log data is considered inconclusive at this stage however there is some evidence of the presence of hydrocarbons in thinly interbedded sand/shale sequences in the upper target intervals. The well has now been deepened to its planned total depth of around 1,560 meters to investigate the deepest target horizon. Elevated gas readings were experienced on deepening the well to its total depth. As planned, a comprehensive wireline logging program is now being carried out.

Tap interprets from the intermediate log data, and from elevated gas readings recorded during drilling, that the well has indications of gas in some of the objective zones. However the reservoir quality remains to be established along with the commercial significance of the hydrocarbon indications. The comprehensive log data, when acquired and interpreted later this week, will facilitate a more conclusive assessment of the well results

PEP 38333 Joint Venture participants are Tap Oil as operator with 35%; Westech Energy with 50%; and Claire Energy with the remaining 15%.