Indo-Pacific Energy Acquires New Zealand Permit

Indo-Pacific Energy Ltd. has signed an agreement with Bligh Oil and Minerals and Springfield Oil & Gas Limited, for INDOF's wholly owned subsidiary PEP38716 Ltd to take over 100% of petroleum exploration permit PEP 38738 in onshore Taranaki, New Zealand. Indo has, in return, granted a net profits interest (NPI) of 25% of the interest assigned by Marabella and Springfield, and committed to a work program involving the re-entry and production testing of the Cheal oil discovery well and drilling a new exploration well next year.

Permit PEP 38738 is situated adjacent to the prolific Waihapa oil field. Several potential Mt Messenger targets, of type similar to INDOF's Goldie oil discovery, are recognized within the permit. The Cheal oil field was discovered in 1995, and oil and gas were produced from the Cheal-1 and Cheal-2 wells; but development was not considered viable at that time. INDOF considers that the introduction of cheaper drilling technologies, combined with the ever-improving New Zealand gas market, should now facilitate field development.