FYI. Monster target below to be drilled next 24hrs. SALTY1...

FYI. Monster target below to be drilled next 24hrs. SALTY

1 September 2004

Kiwi-1 Update

At 06:00am NZ time today, Kiwi-1 was drilling ahead at a depth of 3880m.

The Top F Sand objective has been intersected. Logs recorded while drilling
indicate that the F Sand appears to be water bearing at this location.

The North Cape Formation is expected at approximately 4100m, and the well is
programmed to drill to 4250m.

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%.