Tap Oil Limited (“Tap”) provides the following update on the Fletcher-1 and 2 wells which spudded on 24 July 2007.

Location The Fletcher-1 well is located in exploration permit WA-191-P in the Carnarvon Basin of Western Australia, 15 kilometres east of the Mutineer oil production facilities. A side track, Fletcher-2, has been drilled to a bottom hole location approximately 500 metres to the north-east of the Fletcher-1.

Progress Fletcher-2 has drilled to its total depth intersecting a similar geological section to Fletcher-1. Preliminary analysis of LWD (Logging While Drilling) data indicates a 12 metre gross (4 metre net) oil column. The Fletcher-2 well intersected the Legendre Formation slightly up-dip of the Fletcher-1 well and has demonstrated the continuation of the oil column to the North-East. The well will now be plugged and abandoned.

Tap Comment The Fletcher wells have discovered a new oil trend in WA-191-P. The resource in the immediate vicinity of the wells is expected to be small; however, the potential of the greater Fletcher trend could be significant. Further evaluation will now be required to determine the full potential of this prospective area.