Austral Reports on Cheal-A4 Logging and Completion

Austral Pacific Energy reports that the electric logging of Cheal-A4 has now been completed. These logs, together with good pressure gradient data, are interpreted by Company personnel to identify oil pay in both the Mt Messenger and Urenui Formations of similar type to that successfully flow-tested previously in the Cheal-A3X and Cheal-1 wells. Cheal-A4 intersected the Mt Messenger sands very close to prognosis, and the depth of the base of the oil column appears identical to that predicted from the previous wells. This implies continuity of the oil reservoir over a substantial area enclosing the wells, which is a positive factor in estimating potential field size.

Cheal-A4 well is now being cased in preparation for flow-testing of both intervals; which is scheduled to commence next week. Production testing at Cheal-A3X will also be recommenced in the near future.

The Cardiff-2 well (Austral 25.1% carried, operator) is drilling ahead in 16" hole below 1367m (4485 feet) and is expected to reach its next casing point later this week.

The Hihi-1 well (Austral 25%) is presently setting wellhead prior to drilling out of surface casing.