Origin Energy advised that drilling operations commenced at the Korimako-1 exploration well at 19:30 hours NZDST on October 18, 2010. Current operation as at 06:00 hours NZDST on October 19, 2010 is pulling out of hole (POOH) with the 30" casing to run a wiper trip. The well is being drilled using the semi-submersible drilling rig Kan Tan IV which is being managed for Origin by Australian Drilling Associates (ADA). Drilling of the well is expected to take approximately three weeks.

This well is the first of a two-well program targeting the Korimako and Kokako prospects. Both lie in about 100 meters of water approximately 40 km off the Waikato coast and 100 kilometers south-west of central Auckland.

Well type and location Korimako-1 is an exploration well located in New Zealand Offshore Petroleum Exploration Permit area PEP 38619 in the Northern Taranaki/Northland Basin. Origin Energy Resources NZ Ltd (wholly owned subsidiary of Origin Energy) is operator, and has a 100% interest in PEP 38619.

Korimako-1 is a vertical well. The final surface location is:

•Latitude (NZGD49): 37° 34' 59.92" S •Longitude (NZGD49): 174° 16' 27.79" E •Northing (NZMG): 6401617 m N •Easting (NZMG): 2622823 m E •Planned total depth of Korimako-1 is 1,920mRT. The primary objectives are Miocene age sandstones of the Mangaa Formation.

The exploration well Kokako-1, which will follow Korimako-1, will target the same reservoir formation but in a separate structure. This well has a planned total depth of 1792mRT. Kokako-1 may be deepened to evaluate reservoir objectives within the Eocene to Cretaceous section if encouragement is recorded at shallower levels.

Both wells will be plugged and abandoned after the evaluation program is completed.

Tags: Origin Energy