Tap Oil Limited (Tap Oil) said that oil and gas production rates from the Harriet joint venture are returning to rates experienced prior to the Varanus Island incident as repairs near completion. Both oil and gas rates have increased steadily in the last few months with return to service of the 12 feet sales gas line and the introduction of several oil fields including the recently drilled Simpson 9 and 10 wells.

Repairs to gas processing trains 1 and 2 are expected to be completed in the next few weeks. This will allow gas rates to increase from their current 70 TJ/d (gross) to full contracted rates of around 100 TJ/d.

Total liquids production from the Harriet Joint Venture has increased to 5,500 BOPD (gross). Simpson 9 recently commenced production and is producing at around 400 barrels of oil per day which is lower than anticipated due to what is believed to be poor casing cementation. Although oil rates are lower than hoped, ultimate recovery from Simpson 9 should not be compromised.

Simpson 10 has also been tied in and has experienced mechanical well problems. A remedial program is now underway to determine and rectify the fault. It is believed Simpson 10 will commence production in the next few weeks following this remedial program.

Linda North 1 was drilled and tied in during February 2009 and will be opened for production when the Linda platform is returned to production later this week.

Tap Oil continues to be pleased with the progress being achieved in the Varanus Island Repair Project and the production rates currently being achieved.

Tap Oil has a comprehensive insurance package in relation to its interest in the Harriet Joint Venture, covering not only property damage but business interruption and third party liability. Tap Oil recently reported it had received a third interim payment, bringing the total payments received to date to $11 million (AUD16.1 million). The third interim payment included a property damage component. The interim payments are subject to finalisation of the overall claim which is expected to include further payments for business interruption and property damage.

Harriet Joint Venture Participants:

Tap (Harriet) Pty Ltd 12.2229%, Apache Northwest Pty Ltd (operator) 68.5%, Kufpec Australia Pty Ltd 19.2771%.