Austral Pacific Completes Finance Deal for Arrowhead Acquisition

Austral Pacific Energy Ltd.

Further to Austral Pacific Energy Ltd.'s news release of October 17, 2006, the company confirms that it has now received all necessary regulatory approvals for the placement of 5 million common shares at $1.30 each and that it has now completed the placement. All these shares have a restricted period in Canada until March 18, 2007. Proceeds will be used to fund the acquisition of Arrowhead Energy Limited and for general corporate purposes.