Austral Pacific to Production Test Cardiff Well

Cardiff-2 Well (Austral 25.1%)
Repairs to the 9 5/8" casing in Cardiff-2B have been successfully completed, and the well is about to drill into the Kapuni Formation near 4,000m (13,000 feet) depth. The Cardiff-2B well is to be drilled to 4,900m (16,000 feet) to intersect all the gas-bearing sandstone units intersected in the earlier Cardiff-2 well. Testing of the well is now scheduled to commence in March.

Cheal Field (Austral 36.5%)
Jet-Pump Production Test JPPT#2 on the Cheal-A4 well produced in a stable and sustained manner at an average rate in excess of 400 barrels of oil per day and 200,000 cubic feet of gas per day, over an eight day interval. Cheal-A4 has now produced a total of 6,455 barrels of oil during these tests. JPPT#3 is about to commence. This will trial a third jet-pump nozzle size in order to optimize long term production. Similar testing will be conducted on Cheal-A3X, which has previously flowed oil on natural lift.

Douglas Drilling Project (Austral 35% carried)
A survey of the proposed Douglas-1 well site in Papua New Guinea's PPL 235 will be conducted in the near future, in preparation for site construction. Negotiations to secure a suitable drill rig are underway; and the well is scheduled for third quarter 2005. Ms Jenni Lean has resigned her present position in Austral-Pacific Energy in order to assume the position of CEO of PPL 235 joint venture partner Rift Oil PLC. She continues as coordinating manager of the Douglas-1 project team, within Austral's overall operatorship of the project. This will ensure the best application of resources to completion of this logistically complex and high upside project.