farms out 30% of offshore nz permit

FYI - AWE previously held 75% of this permit. SALTY

MINE: NOG: NZOG INCREASES INTEREST IN TARANAKI PERMIT PEP38483

3 March 2005

NZOG increases interest in Taranaki Permit, embarks on new seismic survey.

New Zealand Oil & Gas has increased its interest in the offshore PEP38483
permit, including the highly prospective Hector Area prospects, from 15% to
18.9% ahead of acquiring 400+ square kilometres of 3D seismic over the Hector
Area next month.

While processing and subsequent interpretation of the new seismic data will
take some months before prospects can be high-graded for drilling, the work
will be fast-tracked with a view to exploration drilling within the Hector
Area late 2005 or early 2006.

The Hector Area is considered highly prospective due to a combination of
favourable reservoir development within the Kapuni "F" sand (the same
oil-bearing interval as in the Tui area and Maui B oilfields) and the prime
location of the area for oil charge from the adjacent Kahurangi Trough.

Several "F" sand leads have already been identified from existing 2D seismic
and better definition of these is the main focus of next month's 3D survey.
There is also a large stratigraphic trap within the Kapuni "C" sands in the
Hector Area, which may be addressed when drilling one of the deeper "F" sand
closures.

Equities in PEP38483 upon satisfaction of various conditions, including
government approvals, will be:

New Zealand Oil & Gas Ltd (via subsidiary Stewart
Petroleum Company Ltd)
18.864%
AWE New Zealand Pty Ltd (Operator) 44.317%
Mitsui E&P New Zealand Limited 22.728%
WM Petroleum Limited (Pan Pacific Petroleum NL) 14.091%