Indo-Pacific Begins Re-entry Operations at Cheal-1

Indo-Pacific reports that the SPDL rig has begun the Cheal-1 re-entry project and it is expected that actual flow testing of the gas/oil pay zone will commence by the end of this month. Cheal-1 is located in New Zealand's Taranaki Basin in PEP38738. An additional sand, which from electric logs appears to be gas bearing, will also be tested. Dependent on the result of Cheal-1, the adjacent Cheal-2 well may also be re-entered and tested. If these test programs are successful, further drilling is anticipated on the field to optimize its development. In addition to the pay established in the original wells, deeper Mt Messenger oil potential is indicated, and this will also be a future objective.

Indo-Pacific, as permit operator, recently proposed to the PEP 38753 joint venture that the Wawiri well be drilled in 3rd Quarter 2003 and this was agreed. Wawiri-1 will test the oil bearing potential of Mt Messenger sandstones in a trap situated just to east of Swift Energy's Ngaere oil field. Several nearby wells have produced oil from within these Mt Messenger sands.

Indo-Pacific is also preparing a drilling proposal for the PEP 38746 permit area, adjacent to the McKee oil field. This well proposal will be considered by the joint venture parties in early June, and if approved is planned to be drilled 'back to back' with Wawiri-1.