New Zealand Issues Tui Area Mining Permit

The New Zealand Government has issued a Petroleum Mining Permit, PMP 38158 ("PMP") for the Tui Area oil development project.

The issuance of this permit provides the formal government approval of the development plan for the Tui Area oil project. The permit gives title to the Tui joint venture partners over all hydrocarbons produced from the permit area (subject to a Crown royalty) during the permit term, which has been set at 20 years.

The PMP area of 504 square kilometers covers not only the three oil fields (Tui, Amokura and Pateke) but also a number of satellite exploration targets, including the Tieke and Taranui prospects. As part of the agreed PMP work program, the Tui Joint Venture has committed to drill two of these exploration prospects. It is anticipated that this drilling will be conducted in conjunction with the drilling of the four Tui Area development wells, in the summer of 2006-07.

In the event of exploration success, the Tui facilities have been designed to accommodate the rapid tie-in of additional fields.

Participants in PMP 38158 are New Zealand Overseas Petroleum Limited as operator with 45%; AWE New Zealand Pty Limited with 20.0%; Mitsui E&P New Zealand Limited with 12.5%; Stewart Petroleum Company Limited (NZOG) with12.5%; and WM Petroleum Limited (Pan Pacific) with the remaining10.0%.