Indo-Pacific Moves Ahead with Taranaki Drilling Program

Indo-Pacific Energy revealed that the Bluff-1 well in PEP 38746, has now been approved for drilling by the joint venture parties. Bluff-1 will be drilled following the (previously announced) Wawiri-1 in PEP 38753. These will be the first wells in the Company's planned multi-well onshore Taranaki drilling program, commencing in August this year. The Taranaki Basin is located in New Zealand.

Both wells are the outcome of successful evaluation work completed over the last year by Indo-Pacific for the permit holders; which beside Indo-Pacific include several prominent Australian oil and gas exploration companies. Indo-Pacific holds a 25% interest in PEP 38746 and a 30% interest in PEP 38753.

Wawiri-1 and Bluff-1 wells will both test Mt Messenger Sandstone targets at depths of 4500-5000 feet. Wawiri Prospect is defined as a fault block structure with an associated seismic amplitude anomaly, situated adjacent to, but at shallower depth than Swift Energy's Waihapa/Ngaere oil fields. Bluff Prospect is identified on 3D seismic as a similar target adjacent to Todd Energy's McKee oil field. Following success at either prospect, pipeline tie-in to adjacent production infrastructure may be readily achieved.

The Company has also entered into an arrangement with Krystal Corporation Pte Ltd, whereby Krystal will fund a portion of past costs, 26.4% of the Wawiri-1 well, and is obligated to fund 26.4% of the Akama deep gas test, when drilled, in order to earn a 20% interest in PEP 38453. Partners in this permit include Tap Oil (New Zealand) Pty Ltd and Magellan Petroleum (NZ) Ltd.