Tap Oil Limited ABN 89-068-572-341 LEVEL1, 47 COLIN STREET WEST PERTH WA 6005 AUSTRALIA

PO BOX 1783 WEST PERTH WA 6872

TEL+61 8 9485 1000 FAX+61 8 9485 1060 Email [email protected] www.tapoil.com.au

18 August 2003

The Company Announcements Platform Australian Stock Exchange Exchange Centre 20 Bond Street SYDNEY NSW 2000

SPUDDING OF TAUNTON-3 OIL APPRAISAL WELL

In accordance with Listing Rule 3.1, Tap Oil Limited ("Tap") advises that the Taunton-3 appraisal well spudded on 16 August 2003.

Location

The well is located in TL/2, 5 kilometres west of Airlie Island at latitude 21°19'08.17"S and longitude 115°06'51.02"E.

Progress

As at 6:00am today, the Taunton-3 well has drilled to a depth of 548 metres measured depth and will continue to drill ahead to the planned total depth of 1,568 metres measured depth.

Tap Comment

The Taunton-3 well is being drilled to establish the lateral extent of an oil accumulation discovered by the Taunton-2 appraisal well in December 2002. Taunton-2 discovered an oil column and which was successfully tested at an average rate of 3,000 barrels of oil per day.

The Taunton-3 well is located at the northeastern end of the interpreted Taunton Oil Field and will appraise the extent of the Birdrong Sandstone reservoir as well as exploring the potential for an oil column in the underlying Barrow Group sandstone.

The Taunton-3 well is expected to take 6 days to reach the proposed total depth of 1,432 metres measured depth. Should this well be successful, a further sidetrack well, the Taunton-3 L1, will be immediately considered to assess the possibility of an interpreted down-dip extension to the east.

Joint Venture Participants

Participants are:

PAUL UNDERWOOD MANAGING DIRECTOR