Fletcher-3 Spudded and Drilling Ahead in Australia's Dampier Sub-Basin

Tap has provided the following information on the Fletcher-3 appraisal well.

Fletcher-3 is a vertical well being drilled to appraise the eastern part of the Fletcher oil discovery in Exploration Permit WA-191-P. The well is located at latitude 19 degrees 14' 47.79"S and longitude 114 degrees 47' 48.04"E. Water depth at the well location is 152 m.

Fletcher-3 spudded on December 6, 2008 and is currently drilling ahead at a depth of 609 meters measured depth. Fletcher-3 is planned to drill to a total depth of around 2970 meters measured depth and is expected to take around 25 days from arrival on location to rig release.

Fletcher-3 is designed to appraise the Fletcher-1 & 2 oil discovery, initially drilled in July-August 2007. The discovery lies at the northern end of the Dampier Sub-Basin, approximately 17 km east of Santos' producing facilities at the Mutineer and Exeter Fields.

Although of modest size, Fletcher's proximity to existing facilities significantly enhances the economics of a potential development. If Fletcher-3 is successful, it is envisaged that the Fletcher Field would be tied-back subsea to the Mutineer-Exeter FPSO.

Fletcher-3 represents a good opportunity for Tap to participate with increased equity in a moderate risk, potential near-term oil development in the Dampier Sub-basin region of the highly productive Carnarvon Basin.

Fletcher-3 Joint Venture Participants:

Tap has slightly higher equity in Fletcher-3 than in the rest of WA-191-P as Nippon Oil Exploration decided not to participate in the well. Tap, along with Kufpec and Santos, absorbed Nippon's equity pro-rata.