Austral Pacific Energy - Operations Update



    WELLINGTON, New Zealand, June 11 /CNW/ -- Austral Pacific Energy Ltd.
(TSX-V: APX; NZSX: APX; Amex:   AEN)
    Preparations are now complete and the A6 well is scheduled to start
drilling in the next 24 hours. The well will drill through a secondary
reservoir and into the primary target over the next 14 days. The well is being
drilled from a surface location adjacent to the Cheal production facility and
will be directionally drilled to reach the reservoir some 1000 meters to the
west and to a depth of 1750 meters.
    If the well is successful, it is modeled to add 320,000bbls of
recoverable oil and 250 - 350 barrels of oil per day (bopd) to the field's
current production rate in the order of 500bopd. At today's oil price
(~$US130/bbl), and production rate, the field generates a revenue stream of
over US$1.95m/ month. Success in this first of two wells could increase
production to approximately 800bopd and the field revenue stream to $US3.1m/
month. Austral Pacific holds a 69.5% working interest in the field.
    The A7 well is scheduled to follow the drilling and completion of the A6
well.
    Austral Pacific has been actively pursuing its strategy to focus on its
core assets of Cheal, Kahili and Cardiff; increase production and reduce costs
through a series of steps that have been announced individually over the past
month.
    Commenting on recent activity in the company, Austral CEO Mr Thom Jewell
said, "We have successfully completed the monetization of our assets in Papua
New Guinea; we have reduced the primary company debt from $US18.5m at year end
to $US9m allowing the company to take on additional debt to benefit from the
full upside of high oil prices. The impact of closing out the hedge is an
increase in Austral's revenue from Cheal from $US 0.68m/month to $US
1.4m/month and an increase in the margin per barrel from approximately $US40
to $US105.
    Mr Jewell further commented that, "in a success case, the A6 well and A7
wells will increase production and further increase the per barrel margin by
making more efficient use of the new production facilities."
    Commenting on other announcements, Mr Jewell said he was disappointed in
the apparent reaction by a few of the company's shareholders to its decision
to reduce the number of exchanges from three to two with the voluntary
withdrawal from the AMEX. He said, "All of our shareholders will be able to
freely trade in the stock through the TSX-V or the NZX and the company will be
able to significantly reduce the costs and compliance complexity of its
business."
    In other news, the longest standing member of the Austral Pacific board
of Directors, Mr Ron Bertuzzi, has decided to step down. Mr Bertuzzi has been
actively involved in the company since 1992 and served on the board from
October 1992 until October 1996 and then again from March 1998. With the
addition of Peter Hazledine in January 2008, the board remains fully
functional in its strategic and fiduciary responsibilities.
    "I have enjoyed working with Ron and I would personally like to thank him
for his invaluable contribution over the past 16 years," Mr Jewell said.

    
     Web site:     http://www.austral-pacific.com
     Email:        ir@austral-pacific.com
     Phone:        Thom Jewell, CEO +64 (4) 495 0880
    
    None of the Exchanges upon which Austral Pacific's securities trade have
approved or disapproved the contents hereof. This release includes certain
statements that may be deemed to be "forward-looking statements" within the
meaning of applicable legislation. Other than statements of historical fact,
all statements in this release addressing future production, reserve
potential, exploration and development activities and other contingencies are
forward-looking statements. Although management believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance, and
actual results or developments may differ materially from those in the
forward-looking statements, due to factors such as market prices, exploration
and development successes, continued availability of capital and financing,
and general economic, market, political or business conditions. See our public
filings at www.sedar.com and www.sec.gov/edgar/searchedgar/webusers.htm for
further information.




For further information:

For further information: Thom Jewell, CEO of Austral Pacific Energy, +64
 (4) 495 0880, ir@austral-pacific.com Web Site:
http://www.austral-pacific.com

Organization Profile

AUSTRAL PACIFIC ENERGY LTD.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890