Australia: Tap Oil Provides Drilling Update on Zola Exploration Well

Tap Oil Limited  provides the following update on the Zola-1 exploration well, offshore Carnarvon Basin, Western Australia.

The Zola-1/Zola-1 ST1 well is located in permit WA-290-P, immediately south of the giant Gorgon gas field in the Carnarvon Basin, Western Australia. The well is being drilled in 285m of water.

Data gathered to date in Zola-1 and Zola-1 ST1 has confirmed a significant gas discovery in the Mungaroo formation. The well results indicate that volumetrically the greater Zola structure could be at the upper end of Tap’s pre drill estimates of 1 – 2 Tcf.

Progress

During the period from 06:00 hours WST on 6 April 2011 to 06:00 hours WST on 13 April 2011 the sidetrack well, Zola-1 ST1, was drilled ahead in 216 mm (81/2”) hole to a final total depth of 4,877m. A wireline logging program is currently in progress.

Forward Plan

Complete the wireline logging program then plug and abandon the well as planned.

Background

The Zola prospect is a very large Triassic tilted fault block on trend with the giant Gorgon gas field and was one of the largest undrilled structural features in the Carnarvon Basin. The well is testing the gas potential of several top and intra Mungaroo formation sands – the primary reservoir at Gorgon.

Located close to existing and developing gas infrastructure, Zola could have multiple potential development options. Any development at Zola could also encompass the overlying Antiope gas discovery (estimated at ~120 Bcf).

WA-290-P Joint Venture Participants

Tap (Shelfal) Pty Ltd 10.00%

Apache Northwest Pty Ltd (Operator) 30.25%

Santos Offshore Pty Ltd 24.75%

OMV Australia Pty Ltd 20.00%

Nippon Oil Exploration (Dampier) Pty Ltd 15.00%

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Source:Tap Oil , April 13, 2011