Tap will earn a 50% interest in these permits by contributing to the cost (on a promote basis) of drilling an exploration well to evaluate the Tawatawa prospect. Tap will operate the well and the permit and is in the process of planning for drilling as early as September 2004 using the Ocean Patriot rig, subject to the necessary approvals being granted.

The Tawatawa prospect is a four way dip closure located approximately 20 kilometers offshore with a mapped closure of up to 40 square kilometers and hence has the potential to contain a significant oil and/or gas resource.

Tap now has participating interests in eleven Exploration Permits and one Production

Licence in New Zealand. Currently the company operates six of these permits and is planning to participate in the drilling of around seven wells in New Zealand over the course of 2004.