For months rumours had circulated that Tap and AWE were going to take advantage of either the Ocean Bounty, which has now left New Zealand waters after drilling four PEP 38460 wells, or the Patriot to spud Galleon South-1 in PEP 38259 two years ahead of schedule.

The Bounty had been liable to the “183 day” rule and departed to remain tax-exempt on New Zealand-sourced income. Last month’s government announcement waiving that ruling until 2009 came too late for the vessel as it is contracted for further work in Bass Strait and the Timor Sea.

That left the Patriot, which could have qualified for an exemption from the 183-day requirement. However, it is now known that Tap and AWE could not successfully complete farm-in arrangements in time for any new partners to help with the cost of Galleon South-1.

Tap managing director Paul Underwood told an investors’ update presentation in Perth yesterday that Galleon South was now scheduled to be drilled in the first half of 2005.

Tap and Westech Energy’s Tawatawa-1 well in PEP 38333 is scheduled to reach its 1500m target depth in the Miocene-aged reservoir within the Tawatawa Prospect by September 18.

Tap will then concentrate on its onshore Taranaki exploration program, which could see up to 10 wells drilled in the next year or so.