The equities were purchased for a total price of $US575,000 with payment of 20% of the sum upon completion of the deal, and the remainder within three months. However, two of the permits, PEP 38718 and PEP 38728, are subject to the right of pre-emption by the existing permit holders.

PEP 38716, in which Indo-Pacific already holds a 14.05% equity is adjacent to the Waihapa oil field, and contains the Wingrove-1 well, which flow tested oil at around 60 barrels per day from shallow Mt Messenger sands in the early 90's.

The Waihapa-8 well flow-tested 750 barrels of oil per day from Mt Messenger sands in a western fault block of the Oru Prospect, which lies largely within PEP 38716.

Indo-Pacific will also acquire a net revenue interest in PEP 38738, which has begun flow testing of the Cheal-1 well in order to commercialise the Cheal gas.

Several other shallow targets similar to Cheal have been identified in PEP 38738, and due to the high demand for new gas in New Zealand and the presence of nearby gas pipeline infrastructure, the company has been encouraged to renew the evaluation of Cardiff and similar structures.

In order to test these structures Indo-Pacific made a placement of special class securities to a number private of investors in New Zealand, raising around $US900,000 for future exploratory work. These securities carry the right to convert to either common shares in INDOF or to a share of future revenue streams.

The permits and equities acquired by Indo-Pacific include PEP 38716 (28.34%), PEP 38718 (10%), PEP 38728 (48%) and PEP 38738 (23.75% Net Revenue Interest).