Apache Spuds Taunton-3 Appraisal Well

The Taunton-3 appraisal well was spud late last week by Ensco's jackup, Ensco 53, and is located in TL/2 approximately 5 kilometers west of Airlie Island. The appraisal well has a planned total depth of 1,568 meters measured depth.

The Taunton-3 well is being drilled to establish the lateral extent of an oil accumulation discovered by the Taunton 2 appraisal well in December 2002. Taunton 2 discovered an oil column which was successfully tested at an average rate of 3,000 barrels of oil per day.

The Taunton-3 well is located at the northeastern end of the interpreted Taunton Oil Field and will appraise the extent of the Birdrong Sandstone reservoir as well as exploring the potential for an oil column in the underlying Barrow Group sandstone.

The Taunton-3 well is expected to take 6 days to reach the proposed total depth of 1,432 meters measured depth. Should this well be successful, a further sidetrack well, the Taunton-3 L1, will be immediately considered to assess the possibility of an interpreted down-dip extension to the east.

WA-234-P Joint Venture Participants are: Apache as operator with 51.834%; Pan Pacific Petroleum with 23.166% and Tap Oil with the remaining 10% interest.