Rift Oil's Puk-Puk-1 Plunges into Main Reservoir

On July 3, 2008, Rift announced that drilling at its Puk Puk-1 exploration well in Papua New Guinea had reached the upper reservoir objective, the Alene Sand, and recorded gas at a depth of approximately 1760 meters, which is significantly higher than originally expected.

Drilling at Puk Puk-1 has now encountered the main reservoir target of the Toro Sand at 1816 meters, approximately 50 meters below the Alene Sand. A good gas show (C1 to C4) was recorded on penetrating the Toro Sand and 12 meters of core has been cut. A second core is currently being run. After establishing the thickness of the Toro reservoir, drilling will continue in order to assess the Imburu Sand, before reaching the Total Depth (of between 1900 and 2000 meters) and running wireline logs.

Flow testing is expected to be completed at Puk Puk-1 by the end of July, at which point the potential of the field and the impact of the discovery of gas at a higher level than anticipated, can be accurately assessed. Flow testing at Douglas-1 will follow and will be completed and assessed by the end of August.

"We are delighted with the continuing success of the drilling at Puk Puk-1 and look forward to reporting further as the operation continues," said Chairman Ian Gowrie-Smith.