Rift Oil Successful in Acquisition of PPL 261 in Papua New Guinea

Rift Oil has completed significant new work in PPL 235 located in Papua New Guinea by drilling the Douglas well and acquiring seismic data, we now will spend time analysing and using that information to define a forward development plan.

Rift Oil has received notification from the Government of Papua New Guinea that its application for PPL 261 (with Austral Pacific 50/50) was successful.

In late December the company expects to receive the processing results of 54km of new seismic data. This will be used to define appraisal well targets on the Douglas field and also to more tightly define the Puk Puk target, which is a separate structure to Douglas within PPL 235.

The study, targeted at defining the commercialization strategy for the gas discovered by the Douglas 1 well on PPL235, is also being completed prior to the end of December; we are working closely with consultants to ensure that this study is thorough and conclusive. Once this is available we will review the future involvement and strategy for the Coral Sea Rig which we own with Austral (65%/35%).