Austral Pacific Raises Money to Fund Future Drilling

Austral Pacific Energy Ltd. announces that it has reached agreement with a number of arms-length accredited investors to privately place up to 14 million equity units at US $0.50 each with each unit comprised of a common share and a 15 month half-warrant, each full warrant being exercisable at US$1.00 per common share. $5.61 million of these funds have been received to date and the balance of the funds is expected to be in-hand before the targeted closing date of June 23, 2008. The Company's agent McDouall Stuart Securities of Wellington will receive a fee of 3% on the placement. The funding is subject to TSX Venture exchange approval. No new insiders will be created on account of the placement.

The funds will be used to fund the Company's current and future drilling programs and other working capital. Results from the Cheal A6 well are expected in the next week to ten days.

The shares and any shares issuable on exercise of the warrants will be subject to a four month resale restricted period in Canada. These securities are not being offered or sold in the United States and will not be registered under the US Securities Act of 1933. They will not be eligible for resale within the United States except in accordance with available exemptions from registration under that Act.