Pan Pacific Petroleum provides a quarterly activities report for the period ended December 31, 2008.

Production from the Tui Area oil fields totaled 2.4 million barrels (PPP 0.24 million barrels) for the December quarter, averaging 26,200 barrels a day. Production was down 23% compared with the previous quarter as a consequence of increasing water production and a planned 7-day maintenance shutdown in early December. Prior to this planned shutdown, Tui Area production had been continuous for 496 days since the commencement of production in July 2007. Cumulative field production to the end of December 2008 was 19.8 million barrels (PPP share 1.98 million barrels). Field performance is currently trending above forecast.

The JV partners have agreed to defer the proposed Tui-4H development, but given the current field performance, the Operator (AWE) has advised that in its opinion there is no reason to revise the proven and probable (2P) reserve estimate of 50.1 million barrels. The Tui Area joint venture participants have agreed to a near field exploration drilling program in 2009, subject to finalising rig availability. The JV has not yet decided which prospects will be targeted.

The New Zealand Ministry of Economic Development has approved the application to extend PEP 38483 for a term of 5 years from 9 December 2008. As part of the renewal work program the JV has completed a 2D seismic survey comprising over 1200 line kms. Following the 50% compulsory relinquishment of PEP 38483, the JV submitted a PIT (Priority in Time) application for an area immediately south and contiguous with PEP 38483, comprising some 2993km2. The outcome of this application has not yet been advised.

Additional 3D seismic is currently being shot in the Maitland area by Apache, Kufpec and Santos, as part of a larger regional survey. Data over WA-33R is expected to be made available in Q3 2009, and should improve the joint venture’s understanding of the Maitland Field, and assist planning for further activities.

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