Tap and Magellan will each assign a 25% interest in WA-291-P to Electro Silica in consideration for Electro Silica contributing to the funding of the Sheila-1 exploration well on a promote basis.

The Sheila prospect is located in the Beagle Sub-Basin and contains a large structural trap against the downthrown side of the basin bounding fault. The well will target a series of stacked Triassic sands with a mean potential oil reserve of 112mmbo.

Tap will operate the well and the permit and is in the process of planning the well for drilling as early as November 2004 subject to rig availability and the necessary approvals being granted.

Electro Silica began its Southern Hemisphere petroleum campaign by farming in to several Bounty Oil & Gas assets offshore NSW, NZ and East Africa.

Following completion of the assignment pursuant to the farmout agreement, the interest of the participants in WA-291-P will be Tap (Shelfal) Pty Limited (Operator) 25%, Magellan Petroleum (WA) Pty Ltd 25% and Electro Silica Oil & Gas Plc 50%.