Tap Oil Spuds Hihi-1 Well Onshore New Zealand

Tap Oil reports that the Hihi-1 exploration well spudded earlier this week. The Hihi-1 well is located in PEP 38748 within the onshore Taranaki Basin.

Hihi-1 will drill to a total depth of 1,936 metres, targeting oil plays within both the Mt Messenger Formation and Moki Formation sandstones. It is anticipated the well will take 12 days to complete.

The spudding of Hihi-1 marks the commencement of a drilling program comprising of up to 5 wells in the onshore Taranaki Basin. Tap will operate up to 4 of these wells. The first two wells Hihi-1 and Miromiro-1 will be drilled consecutively. The well will then be released to another operator for a single well and thereafter it is proposed that the rig will be returned for the drilling of Hursthouse-1, Takahe-1, and Kakariki-1. It is anticipated the entire drilling program should be completed by early February 2005.

Although these wells are targeting small volumes of between 1 and 4 mmbbls, historically success rates for this play have been better than 1 in 3. Tap has large equities of 25% to 50%, and success in the program would be significant to the company.

PEP 38748 Joint Venture Participants are Tap as operator with 50%; Magellan Petroleum with 25% and Austral Pacific Energy with 25%.