MINE: NZO: Tui SW-2 Exploration Well Disclosure Notice

14 Jun 2010 9:24 am

NZO 14/06/2010 MINE

REL: 0924 HRS New Zealand Oil and Gas Limited

MINE: NZO: Tui SW-2 Exploration Well Disclosure Notice

NZOG (New Zealand Oil & Gas Ltd) advises that technical evaluation has indicated that the Tui SW-2 well has not found a commercially significant oil accumulation.

Wireline logging is continuing. However, following evaluation of the previously reported oil shows at the top of the Kapuni F sands, the Operator has advised that an economic oil accumulation is not present at the Tui SW-2 well location.

Tui SW-2 is located in mining licence PMP 38158 in the offshore Taranaki Basin, to the southwest of the producing Tui field.

Upon completion of wireline logging operations, a 7 inch liner will be run so that the well can be suspended for possible future gas injection.

Immediately following completion of operations at Tui SW-2, the drilling rig Kan Tan IV will move a few kilometres to the northeast to drill the Kahu-1 well. The prospectivity of Kahu-1 is not affected by the results of Tui SW-2.

Participants in Tui SW-2 and PMP 38158 are: New Zealand Oil & Gas Ltd (through its subsidiary Stewart Petroleum) 12.5% AWE Limited (Operator) 42.5% Mitsui E&P Australia Pty Limited 35.0% Pan Pacific Petroleum NL (through its subsidiary WM Petroleum Ltd) 10.0% End CA:00196048 For:NZO Type:MINE Time:2010-06-14:09:24:36

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