Harriet Joint Venture Scores One Discovery on Permit TL/1

The Harriet Joint Venture partners made one discovery with the Gipsy-1 well on permit TL/1 offshore Australia south of Varanus Island. The other well, Felicia-1, came up dry.

The Gipsy-3 well was drilled to a depth of 2,154 meters measured depth. The top of the North Rankin reservoir was intersected 32 meters higher than in the Gipsy-1 oil production well to the north and good hydrocarbon shows have been noted over a 38-meter interval. Further wireline operations including formation pressure readings and fluid sampling will be required to confirm the presence of a hydrocarbon column, establish the nature of hydrocarbons present and determine reservoir properties. The well has confirmed the pre-drill interpretation of a significantly higher structural culmination at the Gipsy-3 location updip from the Gipsy-1 oil well. The well will now continue to drill ahead to the 2nd, 3rd and 4th target intervals to evaluate the Brigadier, Mungaroo "A" and Mungaroo "B" sands. The well should reach the planned total depth of 2,370 meters measured depth in the next two days. Following this wireline operations will be conducted to evaluate the hydrocarbon shows encountered.

The Felicia-1 has been drilled to a total depth of 1,872 meters measured depth. The top of the Flag Sandstone was intersected approximately 22 meters low to prognosis, and logs indicate that no hydrocarbons are present. The Felicia-1 well will now be plugged and abandoned as a dry hole. Although the results of the well are disappointing, many other Flag prospects have been mapped in the Simpson area and several of these will be drilled over the next twelve months. The Ensco-56 rig will next be mobilized to drill another two Flag Sandstone wells from the Victoria Platform; the North Pedirka-1 exploration well and the Hoover 2 development well.

Partners in the Harriet Joint Venture are Apache as operator with 68.5%; Kufpec with 19.2771% and Tap Oil with the remaining 12.2229%.