Endymion-1 Well Discovers Gas

The Endymion-1 well, which was spud on October 5, 2002 by the Ensco 56, was drilled from the existing Sinbad production platform to a bottom hole location 2.4 kilometers to south in TL/1 offshore Australia and intersected a 14-meter net gas column (20 meter gross hydrocarbon column. The well has been drilled to a total depth of 3,565 meters measured depth (2,119.4 meters true vertical depth sub-sea). The well is currently being completed prior to being brought on line as a new gas production well.

The top of the reservoir was intersected two meters high to prognosis with a similar hydrocarbon water contact to the adjacent Sinbad Gas Field. Endymion discovery is separate to the adjacent Sinbad Gas Field and reserves should be in the upper end of expectations. Good gas production rates are expected due to the high quality of the reservoir and the presence of a thin shale interbed at the base of the gas column which is anticipated will provide some baffling to water coning.

Endymion-1 was drilled as a deviated well from the Sinbad platform and will be completed for production over the next few days. A reserve estimate will be calculated once all the data from the well is analyzed, and will be reported in due course.

It should be noted that during the 2002 year to date, 10 exploration and appraisal wells have been drilled for Flag Sandstone targets. Of these, 8 have been successful with the discovery of the Double Island, Pedirka, Victoria, Little Sandy, Hoover, and South Simpson Oil Fields, an additional attic of oil in the Tanami Oil Field and the Endymion Gas Field. This is a high commercial success rate of 80% which confirms the benefits of the 3D seismic and the good work of the HJV and the operator.

Partners in the Harriet Joint Venture are Apache as operator with 68.5%; Kufpec Australia Pty Ltd with 19.2771% and Tap Oil with the remaining 12.2229%.