Tap Confirms Discovery at Gipsy-3 Well

Tap Oil confirms that a discovery was made with the Gipsy-3 exploration well. The well is located in TL/1 offshore Australia. Pressure sampling over the reservoirs has now been completed and fluid samples taken for analysis. Together with log data, these readings have confirmed 13 meters of net oil pay (35° API) in the North Rankin, 13 meters of net gas pay in two sandstone intervals within the Mungaroo "A" and 6.4 meters of net oil pay in the Mungaroo "B". Current operations include the running of the remaining logs and the shooting of sidewall cores.

The 13-meter net oil pay within the North Rankin comprises additional pay 33 meters updip of Gipsy-1 which produces oil from the North Rankin. The reservoir quality in Gipsy-3 is similar to that in Gipsy-1 and is expected to flow at commercial rates on production.

The oil pay within the Mungaroo "B" is a new oil zone not intersected by Gipsy-1 which did not drill into this deeper target. This reservoir is also expected to flow at commercial rates. The results of the well are now being applied to the seismic data for remapping. This work will enable reserves to be calculated. Reserves will be reported in due course once all the data is analyzed.

A development well is currently being planned for drilling within the next 4 to 6 weeks, which would allow immediate hookup for production.

Harriet Joint Venture Participants are Apache as operator with a 68.5% interest; Kufpec with a 19.2771% interest and Tap Oil with the remaining 12.229% interest.