Cheal-A3X Production Well Temporarily Shut-in

Austral Pacific Energy Ltd., as operator of the Cheal oilfield announced today that the Cheal-A3X production well located at the main Cheal "A" site has been temporarily shut-in due to mechanical problems.

Preliminary investigation work has indicated that pressure and fluid loss was caused by a leak in the production casing.

The company has immediately instigated a review of remedial options for the well, and at this stage it is planned that a temporary solution will be in place by the second week of November, with the well brought back into production at a reduced flow rate at that time.

A plan for a permanent solution has been put in place, and the company is moving to secure the appropriate workover rig and personnel to implement this plan. It is expected to take approximately four weeks to assemble the equipment and complete the repair work. The company expects to have final repairs completed and the well returned to full production by mid to late December 2007.

"Everyone understands that mechanical problems of the sort we are experiencing are part of the business," said Thompson Jewell, president and CEO. "However, I am very confident that our technical team will have the A3X well back in production with a minimum of downtime and lost production."

The Company also wishes to announce that the planned tie in of the B1, B2 and B3 wells into the Cheal Production Station is progressing according to schedule. The wells, which are located at the satellite "B" site, were shut-in as part of the planned, phased installation of the permanent connections to the production facility. Testing of critical equipment such as switchboards and control systems commenced ahead of plan and as a result the B wells are on schedule to be returned to full production via the Production Station by December 15, 2007.