Tap Oil to Abandon Hihi-1 Well

Tap Oil reports that the Hihi-1A sidetrack has been drilled to total depth of 1,797 meters measured depth ("MD"). At a depth of 1,165 meters MD, the well intersected a total of 4 meters of sandstones at the top of the Mt Messenger Formation, which electric logs indicate may be gas charged. This intersection is too thin to be economic and the well will now be plugged and abandoned.

The well in located in PEP 38748 in New Zealand in the onshore Taranaki Basin.

Hihi-1 is the first of a five well program to explore several prospects identified on the Kaimata 3D seismic survey.

The drilling rig will next go to an adjacent Joint Venture for a short program of approximately ten days, and then will return to drill to the Tap well program at Miromiro-1, Hursthouse-1, Kakariki-1 and Takahe-1.

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