Scalybutt Development Well Commences

Operations commenced on February 10, 2005 on the Scalybutt-1H development well located in in WA-25-L in the northern lobe of the Woollybutt Oil Field offshore Australia.

Scalybutt-1H will be sidetracked from the previously drilled Scalybutt-1 step out well which discovered an oil column west of the previously mapped closure for the field. The well will be drilled as a horizontal production well and it is anticipated the well will take up to 30 days to drill and complete.

Tap Oil estimates that the Scalybutt-1H well has the potential to access up to 10 mmbbls of recoverable oil from the northern lobe of the Woollybutt Oil Field.

The initial results of the Scalybutt-1 well were announced in July 2004, proving a western extension of the Woollybutt Oil Field which had previously been interpreted using the 3D seismic on that part of the field.

Following detailed analysis of the core, log data and detailed reservoir modelling from the initial Scalybutt-1 step out well, it is interpreted that there is recoverable oil in this part of the field not accessed by the two existing production wells.

Scalybutt-1H is designed to access these additional volumes of oil. A subsea flowline will be installed to connect Scalybutt-1H to the existing Woollybutt FPSO production facility.

The Woollybutt Oil Field is presently producing around 21,500 bopd. Scalybutt-1H is expected to commence production by around July 2005 at initial rates of around 8,000 bopd.

The Joint Venture is also in the process of planning follow-up wells to the recent successful Woollybutt-4 appraisal well in the southern lobe. Development options for producing the southern lobe are being considered by the Joint Venture.

Following the drilling of Scalybutt-1H, the Sedco-703 semi submersible drilling rig is scheduled to move to the permit west of the Woollybutt field to drill the Maier-1 and Lauda-1 exploration wells in which Tap has a 25% interest.

WA-25-L Joint Venture Participants are Eni Australia Limited as operator with 65%; Tap Oil Limited with 15% and MOBIL Australia Resources Co. Pty. Ltd. with 20%.