Austral provides drilling results of A6 well

Austral Pacific Energy Ltd, a listed junior explorer engaged in oil and gas exploration and production, provides results of A6 well drilling in the greater Cheal area. Austral Pacific Energy Ltd holds 69.5% stake in the field and TAG Oil holds the remaining 30.5% stake in the field.

Cheal-A6 well reached a total depth of 1930m on June 26th, 2008. The well intercepted an oil bearing MM3 Formation as prognosed at approximately 1818m MD, but the net sand interval was interpreted from electric logs to be some 2 metres thick, thinner than prognosed and sub economic to complete and produce.

The company said that Cheal-A6ST was drilled to a total depth of 1936m on July 2nd, 2008 and intercepted the targeted MM3 sands as prognosed, well above the regional oil/water contact, but again, while oil charged they were only some 2 meters thick.

After evaluation of all subsurface data the joint venture has agreed to plug and abandon the A6ST well as a sub-commercial hydrocarbon discovery.

Mr. Jewell Austral, CEO, said we were pleased with proving that the oil water contact encompassed a larger Cheal field area but very disappointed that the aggregate sand thickness in this location was too thin to be commercially produced.

While we are disappointed in the results in this well we remain confident in the ultimate upside potential of the Cheal field development and the Greater Cheal play trend. We have built well appraisal failures into our overall planning and remain determined to bring success to the JV and shareholders, concluded Mr, Austral.