Indo-Pacific Updates Mt Messenger Exploration Program

Indo-Pacific Energy Ltd. reports that its ongoing program to explore the Mt Messenger play in onshore Taranaki is progressing well. The Mt Messenger play consists of oil and gas bearing sandstones, situated at depths of 4-6,000 feet across the central part of the onshore basin. Despite the modest levels of drilling, several Mt Messenger oil fields have been discovered and are in production, including Ngatoro, Goldie (in both of which Indo has an ownership), Kaimiro, Surrey and the recent Tabla-1 well (INDOF 5%). Flow testing of the Tabla-1 well will occur shortly. A 30-foot interval in the well below 4650 feet contains several indicated oil bearing sandstones, with those in the lowest 10 foot having the best expression of potential oil pay. The testing of Tabla-1 may establish another Mt Messenger oil producer, similar to Goldie or Ngatoro.

In Indo's PEP 38738 permit, the Cheal-1 and Cheal-2 well-heads have now been exposed, and the Cheal site is being prepared for re-entry and flow testing of the oil sands in Cheal-1, which will occur during first quarter 2003. The initial operation will consist of a one-month test of sandstones near 4,000 feet depth which have previously flowed oil and gas on test, in order to verify their long term output. Following this, a production program will be initiated, which may include re-entry of Cheal-2 and the drilling of additional wells into the field.

In the area east of Ngatoro, preparation for the Kaimata 3D seismic program is well advanced, and the seismic acquisition contract has been awarded to Western-Geco. Indo-Pacific Energy and its partners will be acquiring 3D seismic over a 30 square mile area of onshore Taranaki during the first quarter of 2003, in order to identify further Mt Messenger targets for drilling later in 2003 and beyond.