Austral provides operations update

Austral Pacific Energy is likely to commence drilling on A6 well with in the next 24 hours.

As per schedule, the well will drill through a secondary reservoir and into the primary target over the next 14 days.

The well is being drilled from a surface location adjacent to the Cheal production facility and will be directionally drilled to reach the reservoir some 1000 meters to the west and to a depth of 1750 meters.

If the well is successful, it is modelled to add 320,000bbls of recoverable oil and 250 - 350 barrels of oil per day (bopd) to the field’s current production rate in the order of 500bopd.

At today’s oil price ($US130/bbl), and production rate, the field generates a revenue stream of over US$1.95m/ month.

Success in this first of two wells could increase production to approximately 800bopd and the field revenue stream to $US3.1m/ month. Austral Pacific holds a 69.5% working interest in the field.

The A7 well is scheduled to follow the drilling and completion of the A6 well.