Indo-Pacific Energy Spuds Kahili-1A Well

Indo-Pacific Energy Ltd. has commenced drilling operations at the Kahili site in onshore Taranaki permit PEP 38736. The Kahili-1A well is a follow-up to the Kahili-1 well where oil was discovered and produced from the Tariki Sands earlier this year. The well will be kicked off from the Kahili-1 wellbore at 3480 feet to deviate in a southeasterly direction, to intersect both the Tikorangi Limestone and Tariki Sands targets. It is anticipated that the Kahili-1A will intersect the potential reservoirs at an optimal position on the structure.

The Tikorangi is an established oil producer within a mile south of Kahili-1A, while the Tariki Field produces gas and condensate at high rates from the Tariki Sands a further mile south along trend.

Kahili-1A drilling will take approximately one month to reach the Tariki Sands objective. In the event of discovery, the site is well positioned to link in to either the McKee field infrastructure to the north or the Waihapa field infrastructure to the south.

Indo-Pacific is operator of the project, and holds a 45% equity in the well and the permit; with Australian companies Tap Oil Limited and Claire Energy Pty Ltd earning 30% and 25% respectively, under arrangements which require them to meet most of Indo-Pacific's costs through the well.