Woollybutt JV to Spud Woollybutt-4 Well Soon

Woollybutt-4 Well – Southern Lobe

Using the seismic velocity data obtained from the recently drilled Scalybutt-1 well on the northern lobe of the Woollybutt Oil Field, the southern lobe of the structure has now been remapped and shows potential to contain substantial additional reserves to previous interpretations. Accordingly, the Joint Venture has planned for the drilling of a new well (Woollybutt-4) before year end, on the presently undeveloped southern lobe of the Woollybutt structure to test this new interpretation.

This well will be located approximately 1 km to the northwest of the Woollybutt-3 well which was drilled in 1999 and which intersected a 9 meter gross oil column at the top of the Barrow Group reservoir. The new Woollybutt-4 well will also investigate a deeper level within the Barrow Group within which a 6 meter gross oil column was intersected in Woollybutt-3.

Should Woollybutt-4 be successful, the Joint Venture will immediately evaluate fast track options to bring the southern lobe into production.

The Woollybutt Joint Venture is also considering further exploration and appraisal drilling for next year with the possibility of two further wells on the Woollybutt South and South East lobes dependent on the results of the Woollybutt-4 well.

Preparations to bring Scalybutt-1 into Production – Northern Lobe

The initial results of the Scalybutt-1 well were announced in July 2004, confirming an extension of the Woollybutt Oil Field to the west. Since then, the Joint Venture has conducted reservoir and geological modelling indicating that additional oil reserves can be exploited from this location.

Consequently, plans are well underway to re-enter the suspended Scalybutt-1 well to drill and complete Scalybutt-1H as a production well in the first quarter of next year.

Scalybutt-1H, is located 1.9 kms to the east of Woollybutt-2, and is being planned to optimize drainage of this part of the field using the existing facilities.

WA-234-P Joint Venture Participants are ENI Australia as operator with 65%; Tap Oil with 15% and Mobil Australia Resources with 20%.