MINE: NZO: NZOG's Tui First Oil Flowing New Zealand Oil & Gas...

MINE: NZO: NZOG's Tui First Oil Flowing

New Zealand Oil & Gas Ltd ("NZOG") reports that Tui first oil flowed
overnight. This is the culmination of an intensive fast tracked project to
bring the Tui oilfields into production, only three years after their
discovery.

The Tui oilfields are located 50 kilometres offshore in the Taranaki Basin.
Initial production is anticipated to ramp up to 50,000 barrels of oil per day
from 2P reserves (proved and probable) estimated at 27.9 million barrels of
oil. NZOG's 12.5% share of the development gives the company 3.5 million
barrels of oil over the project life, 30% of which will be recovered in the
next 12 months. The first three shipments of oil have already been sold,
benchmarked against the Tapis crude oil price.

NZOG CEO David Salisbury said "Tui is the first of our three current
development projects to come to fruition and the oil revenues will give us a
solid platform to pursue our growth strategy."

NZOG's three major development projects are Tui oil, Kupe gas/oil and Pike
River coal.
End CA:00151445 For:NZO Type:MINE Time:2007-07-31:10:07:57