Indo-Pacific Energy Awarded Acreage in Taranaki Basin

Indo-Pacific Energy Ltd. has been awarded four new exploration permits in the onshore and offshore Taranaki Basin of New Zealand. Of these blocks, three are situated onshore and strategically consolidate the Company's land position over several hundred square kilometers of the most prime area of the basin for discovery of shallow oil pools. The acreage also includes deeper gas targets which are becoming increasingly valuable in light of New Zealand's impending gas supply shortfall and market growth.

Potential for profitable shallow oil discovery in the area is demonstrated by the Company's nearby Goldie-1 discovery, which has produced 217,800 barrels of oil between March 2001 to August 31, 2002. The Company is planning to carry out a 3D seismic survey over several of these permits, in order to identify targets for drilling during 2003. Indo-Pacific's interests in the blocks range from 25% to 50%, and the Company is the designated operator.

In the offshore, Indo-Pacific was awarded a 100% interest in a PEP 38480, located adjacent to Shell's recent Pohokura gas-condensate discovery, a major new field that is now scheduled for development. Two similar but smaller targets were identified from existing seismic and well control, and specialized techniques will now be applied to the seismic, and new seismic may be acquired, to delineate these targets and assess their potential for drilling.