Woollybutt Development Offshore Australia to Proceed

Tap Oil Limited advises that the Woollybutt Joint Venture has signed an agreement for the provision of a leased floating production, storage and offloading system for the development of the Woollybutt Oil Field.

The Woollybutt Oil Field was discovered in April 1997 when Tap farmed in for a 10% interest to drill the Woollybutt-1 exploration well. The field is in exploration permit WA-234-P, 50 kilometers southwest of Barrow Island and 42 kilometers northeast of the Griffin Oil Field. Tap now has a 15% equity interest in the field having recently purchased a further 5% interest in the permit via exercising its pre-emptive rights.

The Woollybutt development plan comprises the re-entry and sidetracking of the existing suspended Woollybutt-1 and Woollybutt-2 wells to drill two horizontal production sections, each 500 meters in length. Produced oil will be exported via a shuttle tanker arrangement. First oil is planned for the first quarter of 2003 at an estimated (gross) production rate of around 35,000 bbls/day. This development will access only the structure mapped around the Woollybutt-1 and 2 wells where Tap has estimated proven and probable recoverable reserves to be 25 mmbls. However, Tap considers there is good potential for upside in this area, specifically; Production data history (when acquired) from the development should enable the Joint Venture to determine the likelihood of more reserves to the west of the currently mapped field; and Woollybutt-3 was drilled some 7.5 kilometers to the south of Woollybutt 1 and intersected two separate oil columns in the upper Barrow Group with a combined column height of 15 meters. A strong performance from the current development will provide encouragement to commit to additional wells to further appraise this discovery.

Partners is Woollybutt are: Agip Australia Limited with 65%; Mobil Australia Resources Company Pty Ltd with 20% and Tap West Pty Ltd with the remaining 15%.