NEWS RELEASE
UPDATE FOR HUINGA-1 WELL
May 6, 1999 - San Francisco, CA
OTCBB Trading Symbol: INDX
The Huinga-1 (PEP 38716, Taranaki Basin, New Zealand, Indo-Pacific interest 19.8%) reached a total depth of 9,625 ft. prior to the weekend, but has now been plugged back to a kick-off point at approximately 5,500 ft., and will be re-drilled as a straight hole towards the original target depth of approximately 12,500 ft.
The Huinga-1 was located to test Tikorangi and Tariki objectives on a thrusted structure. The original location and well path were designed as a deviated hole, kicked off vertical at approximately 5,500 ft. and intended to pass just west of the termination of the basement thrusting. It was expected that this well path would encounter a full section of Tikorangi-Kapuni Tertiary sediment. The possibility always existed that the well could encounter a wedge of basement section, although it was expected that this would be thin, in the range of 300-600 feet.
The well has actually encountered an unexpectedly thick development of Triassic-Jurassic basement metasediment section. Intercalations of younger Tertiary section suggest that the current bottom-hole location of the well is close to the western edge of the basement thrust, but it is impossible to predict the depth at which the bottom of the basement will be penetrated. Although the original Tariki target is probably present below the original well path, the presence of the basement thrust has removed the Tikorangi interval from the deviated well bore. It remains an objective on the structure, downdip to the west.
After experiencing mechanical difficulties with the mud motor assembly at total depth of 9,625 ft., a decision had to be made whether to sidetrack the wellbore below 8,800 ft., or to plug the well back to the vertical wellbore section at 5900 ft. and drill a straight hole to original total depth. The latter course of action has been elected. The revised bottom-hole target is at a point approximately 1,300 ft. west of the original. A section of basement rock is still anticipated in the straight hole, but it will occur lower in the stratigraphic column and be thinner. Potential exists in the straight hole for preservation of a prospective Tikorangi section, while the original Tariki target remains intact.
Estimates of drilling time and costs from this point, indicate that the well can be re-drilled to the original target at a total cost within 10-15% of the original estimated costs.
Indo-Pacific Energy Ltd., one of the IREMCO group of companies, is an international oil and gas exploration and production company, holding interests in an extensive portfolio of oil and gas properties in Australia, New Zealand, Papua New Guinea and China.
On Behalf of the Board,
Alex Guidi, Chairman and Director
Further information is available at www.indopacific.com or by contacting Mr. Gary Saik, Investor Relations Officer, at 415-951-1917 or email: gs@indopacific.com.
The information included in this news release comprises both historical and forward-looking information or statements as defined by the Private Securities Litigation Reform Act of 1995. The Company relies on the safe harbor of this act and cautions that t here can be no assurance that forward-looking statements will prove to be accurate given that resource exploration activity is inherently a high risk business.
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