Tap Oil Encounters Oil with Supplejack South-1 Exploration Well

Tap Oil says that the the Supplejack South-1 exploration target located in PEP 38765 in the Onshore Taranaki Basin reached its total depth of 1,951 meters. Well log measurements indicate that 6 meters of net sand were intersected at the Mt Messenger level with a 1 meter oil column present. An MDT test recovered an oil sample in good reservoir quality. An oil-water contact is apparent within the oil bearing sand and hence a sidetrack well (Supplejack South-1A) is planned immediately to delineate the oil updip of this location. The well is a deviated well from the recently drilled Supplejack-1 surface location.

The Supplejack South-1 well was drilled to investigate the extension of the Supplejack-1 gas discovery well drilled on July 22, 2005.

The Supplejack South-1 well encountered a thin oil column in good reservoir downdip of the discovery well. Based on seismic mapping updip potential is recognized and will be tested by the sidetrack well. Should the sidetrack well confirm hydrocarbons there is potential for a further updip closure which may also be investigated.

PEP 38765 Joint Venture participants are Tap (New Zealand) Pty Ltd as Permit Operator with 50.00%; Austral Pacific Energy (NZ) Limited as Operator of well with 36.67% and TAG Oil Limited with 13.33%.