pukeko-1 results :(

Not good news sadly .... SALTY

PUKEKO-1 RESULTS

Wire line logging operations at Pukeko-1 have now been completed. Over the
interval 4055-4160 metres, where gas peaks and oil shows were observed while
drilling, wire line log data indicate interbedded shales and sands with poor
reservoir quality.

It is possible that the shows encountered while drilling may be remnants of
an ancient oil field that has subsequently been spilled by later tectonic
movements in the area.

Over the interval 3910-3917 metres, wire line log data indicate sandstone
with poor reservoir quality.
.
While there does not appear to be an economically producible oil column at
this location, the Joint Venture is strongly encouraged by the extensive oil
shows in the well, as these have confirmed the oil play in the area west of
the Maui Field. The Operator of the PEP 38460 Joint Venture is now
investigating options for early acquisition of 3D seismic in order to define
potential up dip of Pukeko-1.

It is expected that the Ocean Bounty drilling rig will be released tomorrow
in order to drill a third party well. The Joint Venture will take the rig
back in mid July to drill Pateke-1 and Kiwi-1 in the area close to the Tui
and Amokura oil discoveries.

New Zealand Oil & Gas Limited holds a 12.5% interest in PEP38460 through
subsidiary Stewart Petroleum Company Limited.

Other participants in the venture are New Zealand Overseas Petroleum Limited
(operator) 45%; WM Petroleum Limited (a subsidiary of Pan Pacific Petroleum
N. L.) 10%; AWE New Zealand Pty Limited 20%; and Mitsui E&P New Zealand
limited 12.5%