Jury Still Out: Tui Reserves Reassessment Not Yet Complete

New Zealand Oil & Gas Ltd advises that at this time the proven and probable reserves (2P) for the Tui area oil fields are 47 million barrels, and a further reserves reassessment of the Tui is still to be completed.

The 2P reserves were increased to 47 million barrels on May 21, 2008, as a result of an extension of the charter for the FPSO vessel Umuroa. The field operator, AWE, on behalf of the JV, is continuing to review the Tui reserves. This review was initiated in March because of the continued strong production performance of the reservoirs.

An announcement will follow the completion and consideration by the joint venture of the review. At this stage New Zealand Oil & Gas expects that this will be completed by around the end of June 2008.

The Tui Area Oil Project is located in PMP38158 in the offshore Taranaki Basin, New Zealand, approximately 50 kilometers off the coast and in water depth of approximately 120 meters. It is the country's first stand-alone offshore oil development.

Participants in the Tui area oil fields are: AWE (operator) with 42.5%, New Zealand Oil & Gas with 12.5%, Mitsui E&P Australia Pty ltd with 35%, and Pan Pacific Petroleum NL 10%.