Lumba Lumba-1A Exploration Well Update

Thursday, Jul 31, 2008

Tap Oil Limited (“Tap”) provides the following information on the Lumba Lumba-1 exploration well.

Location
The Lumba Lumba-1 exploration well is located in permit SC 41 at an approximate latitude of 6o 11’ 12.77”N and longitude 119o 15’ 33.58”E. The permit is located in the Sulu Sea, Philippines, approximately 135 km off the northeastern coast of Borneo.

Progress
Drilling operations are proceeding at the Lumba Lumba-1A following the abandonment of the Lumba Lumba-1 well on 25 July due to mechanical problems during cementing the 20” casing. Lumba Lumba-1A well has since progressed to 1,469 meters Measured Depth and is currently drilling ahead.

Lumba Lumba-1A is planned to drill to a total depth of around 3,000 metres Measured Depth in a water depth of 1,100 m and is planned to take an additional 14 days to reach the total well depth.

Tap Comment
Lumba Lumba is a moderate risk prospect located in the central part of SC 41. It is covered by the Alpine 3D Seismic Survey, which was acquired in 3Q 2007.  The well will test a large inversion structure with multiple objectives in interpreted channel and fan complexes.  Estimated recoverable volumes are in the 50–150 million barrels range.

Tap believes that SC 41 has the potential to be a “game changer” for the company as it contains numerous prospective features of substantial size. Various independent play concepts exist in SC 41 that are being matured for drilling regardless of the Lumba Lumba-1 results.  Encouragement is provided by offset wells which demonstrate a working petroleum system.  Nevertheless, although minor oil has been recovered from some wells, reservoir development and the identification of sand-prone fairways remains technically challenging and is recognised as the main exploration risks in the area.
 
Joint Venture Participants:
Tap Oil (Philippines) Pty Ltd      50%

Salamander Energy                        35%
Philippine Domiciled Participants  15%

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