Agip and Partners Begin Work at Woollybutt Project

Drilling operations for the Woollybutt development wells have now commenced with the semisubmersible, Sedco 702, on site and preparing to re-enter the Woollybutt-1 discovery well to drill the Woollybutt-1A horizontal production well. The well is located in WA-234-P, 4.5 kilometres west of Barrow Island. The first well operations to commence drilling the Woollybutt-1H production well got underway on July 23rd. The well is planned to drill ahead to the planned total depth of 3,200 meters measured depth (2,516 meters true vertical depth).

The first well, Woollybutt-1H will be sidetracked from the original discovery well Woollybutt-1 and will be completed using a 200 meter horizontal section for optimum flow rates. Woollybutt-1H is expected to take 14 days to reach its projected total depth of 3,200 meters measured depth. On completion of Woollybutt-1H development well, the Woollybutt-2H development well will also be re-entered and sidetracked in a north-northeast direction from the original Woollybutt-2 appraisal well and will be drilled and completed with a similar horizontal production assembly as Woollybutt-1H.

The Woollybutt Field is located approximately 40-50 kilometers west of Barrow Island. Production from the Woollybutt Field will be via a Floating Production, Storage Offloading Vessel. The oil tanker vessel, the "MT Four Lakes" is currently in Singapore undergoing conversion into an FPSO and is expected on location in December 2002 with first oil production expected in early 2003. Initial production is expected at a rate of up to 35,000 BOPD.

Participants in WA-234-P are Agip as operator with 65%; Mobil Australia with 20% and Tap Oil with the remaining 15%.