TAG to Drill Arakamu-1 After Supplejack South-1

Calgary-based TAG Oil Ltd plans to drill the Arakamu-1 well in its 100% owned and operated PEP 38757 after the Supplejack South-1 appraisal well is drilled this month in PEP 38765.

TAG also announced that the Konini-1 well in the Bridge Petroleum operated PEP 38751 has been plugged and abandoned. TAG, which holds a 33.33% interest in the Konini-1 permit, said the well had reached a total depth of 2096 m.

OD&E Rig 19 will now move immediately to drill the SuppleJack South-1 well located on the Tap Oil operated PEP 38765 (in which TAG has a 13.33% interest and Austral Pacific Energy a 36.67% stake).

Austral Pacific Energy said in a separate release that the drilling of Supplejack South-1 well is scheduled to commence on approximately December 6, 2005.

Austral Pacific, a 36.67% interest holder in the permit, will operate the well under an agency agreement with the permit operator, Tap Oil, which holds a 50% interest.

TAG said the Supplejack South-1 well will follow the Supplejack-1 dual zone gas/condensate discovery made earlier this year in a different permit PEP 38741 (in which TAG holds a 20% interest). The new well will have a surface location in PEP 38741, but will be directionally drilled to reach a true vertical depth of approximately 2000 m in PEP 38765, testing a 3-D seismically identified sweet spot approximately 700 m from the Supplejack-1 discovery.

TAG said the OD&E Rig 19 will then move to spud the Arakamu-1 exploration well, probably in late December. This well will test multiple Miocene-aged targets including the proven producing horizons at the Cheal oil and gas field less than 4 km to the north. Arakamu-1 should take approximately 16 days to reach total depth of 2250 m.

Austral Pacific Energy also announced that it is scheduled to drill the Heaphy-1 well in January 2006. This is in PEP 38746 immediately east of the McKee mining permit. Austral Pacific holds a 67.7% interest in the permit.

The company said it also plans to drill the Ratanui-1 well in PEP 38741, (in which Austral holds a 30% interest) in the second quarter of 2006, as part of the company's ongoing onshore Taranaki exploration program. This is the same permit in which the original Supplejack-1 well was drilled.