The Tui Area oil fields were discovered as the result of exploration in the area by Pan Pacific and its partners, since 1996.

Tui Area Oil Fields

Oil Production: Production from the Tui oil fields totalled 4.1 million barrels (PPP 410,000 barrels) in the March 2008 quarter, averaging approximately 45,000 barrels/day.

Cumulative field production to the end of April 2008 was 11.8 million barrels (PPP share 1.2 million barrels).

Field production performance to date has exceeded initial expectations and, as a result the operator of the Tui venture completed a further reserves review which was completed in June 2008, resulting in an increase in 2P (proven & probable) reserves of 3.1 million barrels, compared to the initial development investment scenario of 26.8 m/barrels.

Due consequence of strong performance of the Tui oil fields, has been the extension of the term of the charter for the Floating Production Storage and Offloading (FPSO) vessel, 'Umuroa' through to 31 December 2022.

Under this extension, the fixed term of the lease was increased by 3 years to end 2015, after which the Tui joint venture has a seven one-year options to end 2022.

The charter extension allows the Tui joint venture to produce substantial additional oil from the Tui field and to maximise the value of any further oil discoveries in the area.

An additional development well, Tui-4H, is scheduled to be drilled in the mid-late 2009 calendar year. The development drilling may be undertaken in conjunction with further exploration drilling within the permit area.

Tui crude is sold into the East Coast Australia market, South East Asia and, more recently, to refineries in Hawaii. Tui crude is priced relative to Asia's Tapis.