OilVoice - Pan Pacific Petroleum Provides 2009 Fourth Quarter Operational Update

Pan Pacific Petroleum Provides 2009 Fourth Quarter Operational Update

Sunday, January 31, 2010

Tui Area Oil Project (PMP 38158) Taranaki Basin (PPP interest 10%)
Production from the Tui Area oil fields totaled 1.3 million barrels (PPP 0.13 million barrels) for the December quarter, averaging 14,216 barrels a day. Cumulative field production to the end of December 2009 was 26.1 million barrels (PPP share 2.6 million barrels). Operating revenue from Tui during the quarter was US$9.3m (net PPP).

The Tui Area Joint Venture has continued planning for the forthcoming exploration drilling campaign, including a review of the preferred drilling candidates. The semi-submersible drilling rig Kan Tan IV has been contracted to drill at least two exploration wells, with the campaign likely to begin around end March-early April, based on the current rig schedule. Successful discoveries would likely be developed by low-cost tie-back to the existing Tui facilities.

Block 07/03 Vietnam
PPP has been advised that PetroVietnam (PV) have authorised PetroVietnam Exploration Production Corporation Ltd (PVEP) to exercise its pre-emptive right and to acquire a 10% participating interest out of the 15% assignment proposed in the Premier Oil Vietnam South B.V farmout of Block 07/03 to Pan Pacific Petroleum (Vietnam) Pty Ltd (PPPV), a subsidiary of the Company. PPPV is currently progressing assignment of the remaining 5%, which remains subject to formal PV and Vietnam Government approval.

The second Block 07/03 commitment exploration well Cá R?ng Vàng well was drilled to a total depth of 3980m MDRT without encountering any significant hydrocarbons, and was plugged and abandoned as planned. Although the results are disappointing, the well has provided important pressure data which will be used in assessment of the discovery made in June last year at Cá R?ng Ð? (Red Emperor).

JPDA 06-103
Pan Pacific Petroleum (JPDA 06-103) Pty Ltd ('PPPJ'), a wholly owned PPP subsidiary, has progressed and completed its earning obligations in respect of the farmin to 15% equity in JPDA 06-13. An application for approval of the interest assignment has been made to the Autoridade Nacional do Petróleo of Timor Leste, the Designated Authority.

The first two exploration commitment wells targeting the Loré and Lolotoe prospects were spudded in December.

The first well Loré-1 was drilled to test the Elang and Plover objectives, but encountered only minor shows with no zones of significant moveable hydrocarbons, and the well was plugged and abandoned. The second well, Lolotoe-1 targeting the same objectives was spudded on 17th December, and was still drilling at the end of December. The well has since been drilled to a TD of 3935m MDRT, and log evaluation of the primary objective Elang/Plover Formation sandstones indicates that no commercial hydrocarbon zones are present. The well was plugged and abandoned.

PEP 38483 Taranaki Basin (PPP interest 14.091%)
An application has been made to the Ministry of Economic Development to reschedule permit commitments, and proposing a partial relinquishment. Evaluation of the shallow gas play has been completed, and this will now be marketed as a farmin opportunity by the Operator (AWE) on behalf of the JV partners.

WA-33R Carnarvon Basin (PPP interest 10%)
The WA-33R retention lease has been renewed for a term of five (5) years with effect from 30 November 2009.

The NZX announced the promotion of PPP to the NZX 50 Index from 8th October 2009.