FYIPateke-1 spudded at 4.15am on 19 July 2004 and at 6.00am...

FYI
Pateke-1 spudded at 4.15am on 19 July 2004 and at 6.00am today had reached a
depth of 205 metres. The well is targeting oil in the Kapuni "F" Sand at
approximately 3700m which is likely to be reached in about 16 days time.

Pateke, which is the third prospect to be drilled in NZOG's current program,
is about 4km north of the Amokura oil field. After Pateke-1, the joint
venture plans to drill the Kiwi prospect, which is also approximately 4km
from Amokura.

Pan Pacific Petroleum NL through WM Petroleum Limited (a wholly owned
subsidiary of Pan Pacific Petroleum N.L.) has a 10% interest in PEP38460.

Other participants in the venture are New Zealand Overseas Petroleum Limited
(operator) 45%; Stewart Petroleum Company Limited (a subsidiary of New
Zealand Oil & Gas Ltd) 12.5%; AWE New Zealand Pty Ltd 20%; and Mitsui E&P New
Zealand Limited 12.5%.