Tawatawa-1 to be Plugged and Abandoned

Tap oil reports that the Tawatawa-1 exploration well located in PEP 38333 offshore New Zealand will be plugged and abandoned.

The well was drilled to a total depth of 1,560 meters. Elevated gas readings were recorded over an 800 meter interval, while drilling from 760 meters to the total depth of the well.

A comprehensive logging program including the taking of pressure readings has now been completed and interpreted. The results show that the well intersected thinly bedded siltstones and shales, and that no effective reservoir beds are present in the well.

Tap interprets, from the elevated gas readings recorded during drilling, and from subsequent log data, that the Tawatawa-1 well demonstrates the existence of hydrocarbon charge in the basin and that while a valid trap is present at this location, the lack of reservoir precluded a commercial accumulation at Tawatawa.

Tawatawa is only the third well to be drilled in the large offshore East Coast Basin. The nearest well, Titihaoa-1 which lies 35 kilometers to the southwest in PEP 38333, intersected interpreted reservoir quality gas sands which were not tested due to the lack of a gas market at the time of drilling in 1994. Tap has identified a number of other prospects in the PEP 38333 permit where reservoir quality may improve and these will be evaluated in the near term. Data from the Tawatawa-1 well will be a valuable resource for Tap's ongoing exploration program.

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