Tap Acquires Stake in New Permit Offshore Australia

Tap Oil Limited is in the process of acquiring a 25% interest in a new exploration permit (W04-13) as part of the recent government gazettal acreage offering. The permit is located in the offshore Carnarvon Basin of Western Australia.

This permit is contiguous with the producing Woollybutt Oil Field permits in which Tap has a 15% interest. The new permit is also contiguous with permits WA-320-P and WA-290-P in which Tap will earn a 25% interest by participating in the drilling of two wells (Maier-1 and Lauda-1) in March 2005. Maier-1 and Lauda-1 are prospects occurring in a similar geological setting as the Woollybutt Oil Field and are scheduled to be drilled using the Sedco 703 drilling rig, immediately after it has completed the Scalybutt-1H horizontal production well in the northern lobe of the Woollybutt Oil Field.

The new permit, W04-13 is partially covered by 3D seismic data and is considered by Tap to be very prospective with a number of prospects similar to the Woollybutt field already mapped.

The initial work program comprises the drilling of one well in 2006, however this could be brought forward to late 2005.

The addition of this permit provides Tap with substantial coverage of the Woollybutt trend. In light of the recent success at Woollybutt-4, this new permit is a timely acquisition of acreage in this area.

W04-13 Joint Venture Participants are OMV Australia with 50%; Tap Oil with 25% and Nippon Oil Exploration with 25%.