Tap Oil Limited advises that the Manora-4 appraisal well, in concession area G1/48, Gulf of Thailand, was spudded on 14 October 2010. Manora-4 is a stepout well targeting an area adjacent to the Manora Field. The Manora Field was discovered by the Manora-1 exploration well in November 2009.

Tap's participation in this well is through its newly acquired 75% interest in Northern Gulf Petroleum Pte Ltd (NGP), which in turn holds a 40% interest in the concession area.

Location The Manora-4 well is located in the northern Gulf of Thailand in 45 metres of water, approximately 75 kilometres from shore and 230 kilometres south of Bangkok. The well surface location is approximately 1.5 kilometres north east of the Manora-1, 2 & 3 surface location. The well will be directionally drilled to a bottom hole location beyond Tap's current field limits at a measured depth (MD) of approximately 3,620 metres and a true vertical depth (TVD) of approximately 3,080 metres.

Progress Manora-4 commenced on 14 October 2010 and the well was drilled to a depth of 311 metres where the 13-3/8' casing was cemented in place. After pressure testing the casing and blowout preventers, the well was drilled to a depth of 885 metres MD (813 m TVD) in 12-1/4' hole as of 7:00 am WST 17 October.

Forward Plan Drill ahead in 12-1/4' hole to section TD and run wireline logs. The well is programmed for 25 days in total. Upon completion of evaluation the well will be plugged and abandoned in the normal course of offshore operations.

Participants Pearl Energy (Operator): 60% Northern Gulf Petroleum Pte Ltd: 40% (Tap has a 75% interest in NGP)

Technical Details Manora-4 is a stepout well targeting an area adjacent to the discoveries at Manora 1, 2 & 3 and will test a separate culmination. Success at this well would extend Tap's view of the field limits and could significantly improve Tap's resource estimates, while failure will have little impact on the current estimate of 24 million barrels. In either outcome, this is an important well for calibrating the geological understanding prior to field development.

Manora-4 is also planned to penetrate a deeper interval, not previously drilled in this area, which has the potential for deeper oil reservoirs not yet discovered.

The well will also provide important information about sands in a downdip position which will be used when planning for the field development, including potential water injection for increased recovery.

Tap's Chief Executive Officer Mr Peter Stickland commented, 'This is the first activity to be undertaken since Tap Oil Limited acquired its interest in Northern Gulf Petroleum Pte Ltd and we look forward to working with the operator, Pearl Energy, to advance the appraisal of the Manora Field and the exploration of the surrounding acreage.'

Tags: Tap Oil Limited