Waingaromia 2 Well Reaches 1647 Feet

Indo-Pacific Energy Ltd. advises that the Waingaromia-2 well in permit PEP 38330, East Coast Basin, has now reached its TD of 1647 feet. Despite evidence for presence of gas over an extended interval in the well, with both gas and oil shows associated with fractures, there is no producible sandstone reservoir, and the steep dips indicate the well is not on structure. This well is, therefore, being plugged and abandoned. Future work in this permit area is yet to be decided, but will probably concentrate on the eastern area of the permit, where there is better evidence for reservoir development.

The Huinga-1B well in onshore Taranaki permit is drilling ahead in 8 1/2" hole at a depth of 13460 feet. The well has yet to penetrate the basement overthrust block, in which some oil and gas shows associated with fractures have been observed at various levels.

The Goldie-1 well has now been reopened for ongoing oil production. Negotiations for sale of gas associated with oil production are underway. The gas can be linked in to the nearby Kaimiro production station via the now under-utilized Ngatoro-3 gas pipeline. The Company considers that full development of the Goldie oil pool requires the drilling of the Goldie-2 well to test the southern extension of the feature. Thereafter, a water flood project, as successfully initiated in the adjacent oil field, will be considered as a means of improving recovery of oil from the Goldie reservoir. Further site optimizations are planned to reduce operating costs.

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