Kahili-1B Well in Taranaki Basin Looks Promising

The Kahili-1B well located onshore Taranaki Basin has intersected hydrocarbons similar to those recorded in Kahili-1. The Kahili-1B well has been drilled to a depth of 2,847 meters measured depth. The Tariki target reservoir was intersected at a depth of 2,817 meters MD (2,465 meters vertical depth subsea), being 279 meters above the base of the oil column as interpreted from log data in the Kahili-1 well from which oil was recovered. High gas readings were recorded in Kahili-1B on drilling through the reservoir.

Drilling will continue through the Tariki Sandstone to total depth. On completion of drilling, logs will be run and drill stem tests carried out. After some initial difficulties, the target reservoir of this well has now been intersected which indicates the presence of hydrocarbons. This result is consistent with Tap's pre-drill interpretation and prognosis. Kahili-1B should reach total depth within the few days. Following the running of wireline logs a testing program will then be carried out to determine the nature of the hydrocarbons and flow rates.

Partners in PEP 38736 are Indo-Pacific Energy as operator with 20%; Tap Oil with 30%; Millennium Oil with 25%; and Claire Energy with the other 25%.