Indo-Pacific Energy Begins Production Testing on Huinga-1B Well

Indo-Pacific Energy Ltd. is about to commence production testing of the Huinga-1B well. The Huinga oil discovery is located in Petroleum Exploration Permit 38716, onshore Taranaki Basin, New Zealand.

The test program will consist of an initial five-day "clean-up" flow of both test zones. This will be followed by a five-day day flow of the upper zone intersected between 13,980-14,058 feet, and a five-day day flow of the lower zone between 14,393-14,465 feet. It is expected that initial flows will include considerable amounts of drilling fluids and lost circulation material, which were lost into the formation during drilling. It will, therefore, take some time to achieve clean, stabilized oil and gas flow rates.

This initial test is designed to provide information on formation pressures, well productivity and minimum reserve estimates. It is possible that the two test zones intersect the same oil pool and that this might be a single oil column over a depth interval of 750 feet or more. The Huinga structure is mapped on seismic as covering an area of up to 2,500 acres within PEP 38716. Similar structures are identified to the south in PEP 38716, and in the acreage immediately to the north, over which exploration rights were last week awarded to a consortium led by Indo-Pacific.

All oil produced in testing at Huinga will be on-sold, initially under a common marketing arrangement of the joint venture. Thereafter, it is planned to continue oil production from one or both zones, dependent on the results of the initial test. The Company has a 12.3% interest in Huinga-1B and the PEP 38716 permit.

Indo-Pacific also advises that it expects the Kahili-1A well to commence during September. Kahili-1A will be deviated out of the Kahili-1 wellbore to intersect a more crestal position on the Kahili structure. Oil was recovered during a short open hole test of the Tariki sandstones in Kahili-1 earlier this year.