PCL Ann

Any thoughts guys?
PANCONTINENTAL OIL & GAS NL 2002-09-05 ASX-SIGNAL-G

HOMEX - Perth

+++++++++++++++++++++++++
EP 38716, TARANAKI BASIN PANCONTINENTAL: 6.6%

The Joint Venture has agreed to suspend further testing of the Kapuni
sandstone 4387- 4409 meter perforated interval and commence testing
of the overlying Murihiku Formation fracture zone perforated interval
of 4261 - 4285 meters. This operation is scheduled to commence on
Friday 5 September.

As with the Kapuni interval, the Murihiku zone will also be acid
washed, to remove the effects of cementing the casing and lost
circulation material that could impede the flow of hydrocarbons. The
Murihiku zone will be flow tested separately over a period of several
weeks.

The Murihiku fractured zone, because of the severe lost circulation
problems encountered while drilling, is indicative of high
permeability, and is expected to flow at higher rates than the Kapuni
interval.

Swabbing operations to encourage the Kapuni sandstones to flow have
provided enigmatic results, with sub commercial, intermittent, gas
flows that have been flared at the surface. No oil has been recovered
to date, but fluids interpreted as possible formation water were
recovered. The recovery of 21 barrels of 42 degree API oil from the
4370 - 4428 meter Kapuni sandstone interval during DST#1,
demonstrated that this interval is oil productive. The top of the
Kapuni Group is interpreted at 4378 meters.

The forthcoming Murihiku test data will provide additional fluid and
test information to assist in developing a definitive Kapuni
sandstone and Murihiku fracture reservoir model which will explain
the test results to date.

The production test data will also assist in determining the possible
total thickness of the current interpreted (minimum) 237 meter gross
oil column, as no definitive oil/water contact and no clear
indication of a gas oil contact has been established to date.

Sales contracts for oil produced during the Huinga testing program
have been negotiated on an interim basis, with the option to extend
once specific volumes are defined by the testing program.

In the Taranaki Basin, oil and gas are produced at commercial rates
from Kapuni sandstone reservoirs as well as fractured limestones of
the Tikorangi formation. Many large commercial oil and gas Fields,
both overseas and within Australia produce from fractured reservoirs.

PEP 38716 hosts all or part of three structures related to the
eastern bounding fault of the Taranaki Basin, all being similar to
that of the major Rimu/Kauri oil and gas discovery 18 kilometres
south which is currently under development. The structures are named
Huinga and Huinga South, both entirely within the Permit, and Makino,
which is partly within the Permit but mostly within PEP38728, which
adjoins to the South.

(ASX* LISTED) PARTICIPANTS IN THE PEP 38716 EQUITY %
JOINT VENTURE ARE:

* Pancontinental Oil & Gas NL
(through subsidiary Euro Pacific Pty Ltd) 6.6%

* Marabella Enterprises Ltd (Operator)
(Subsidiary of Bligh Oil & Minerals NL) 24.8%

*AWE (New Zealand) Pty Ltd.
(Subsidiary of Australian Worldwide Exploration Ltd.)12.5%

* Springfield Oil & Gas Ltd (1)
(Subsidiary of Impress Ventures Ltd) 4.8%

Preussag Energie GmbH 24.00%

Swift Energy NZ Limited 15.00%

Indo Pacific Energy (NZ) Limited 7.30%

PEP38716 Limited 5.00%

(]) Subject to Joint Venture and government approvals; Springfield
Oil & Gas Limited is a wholly owned subsidiary of Impress Ventures
Ltd.


Enquiries:
Andrew Svalbe
Director, CEO.

Tel: 08 9227 7178
Fax: 08 9227 9079
Email: [email protected]

It is advised in accordance with Australian Stock Exchange Limited
Listing Rule 5.11 that the report on the above project has been
prepared by Mr Andrew Svalbe, AAPG, PESA, ASEG, FESWA who has had
more than the required five year experience and is a competent person
as defined in the Listing Rules of Australian Stock Exchange Limited
and has consented in writing to the inclusion of this report as it
appears here.