13 metre colum of oil at pateke

16 August 2004

PATEKE OIL DISCOVERY

New Zealand Oil & Gas advises that LWD logs in the Pateke-2 well indicate
that there is a 13 metre oil column in the targeted Kapuni F Sand.

Log character is the same as in the previous nearby wells at Tui and Amokura,
indicating excellent reservoir quality.

The oil-water contact in Pateke-2 is at the same depth as in the Amokura-1
well, 4km to the south. This implies that both wells have drilled into the
same pool of oil.

The full size of the Pateke-Amokura field will be determined once post-drill
studies have been completed in 6-8 weeks time. However, NZOG considers that
it is likely that the field will rapidly proceed to development with a target
of first oil production within 24 months.

Pateke-2 has reached total depth of 3861 metres and as soon as operations at
Pateke are completed, the drilling rig will move to drill the Kiwi-1 well 4
km southwest of Amokura-1.

Other participants in the venture are New Zealand Overseas Petroleum Limited
(operator) 45%; WM Petroleum Limited (a wholly owned subsidiary of Pan
Pacific Petroleum N.L.) 10%; AWE New Zealand Pty Ltd 20%; and Mitsui E&P New
Zealand Limited 12.5%.
End CA:00103807 For:NOG Type:MINE Time:2004-08-16:09:00:56