Melbana Energy Limited provided the update with respect to the imminent drilling of the high impact Pukatea-1 exploration well in New Zealand onshore permit PEP 51153. The Operator of the PEP 51153 joint venture (Melbana 30%, TAG Oil 70% and Operator) has advised that the Nova-1 rig has now commenced mobilisation to the Pukatea-1 well site. Mobilisation and preparatory activities are expected to take 1 week with drilling planned to commence on or about 25 January 2018 and take approximately 33 days to reach a total depth of approximately 3,170 metres. The Pukatea-1 well is a high impact opportunity. The primary objective is the highly productive conventional Tikorangi reservoir with prospective resources attributable to the Pukatea prospect estimated to range from 1.3 to 40 million barrels of oil equivalent (MMboe) (Low-High estimates) with a Best Estimate of 12.4 MMboe and a chance of success of 19%. Production capability from the Tikorangi Limestone proven at the adjacent Waihapa oil field with individual initial rates up to 5,000 barrels/day and produced in excess of 23 million barrels of oil to date. Good reservoir and oil shows are already demonstrated at the northern edge of the Pukatea prospect by Douglas-1 well drilled in 2012 350m down-dip from the crest of Pukatea-1, further derisking the prospect. The Pukatea prospect is ideally located, being proximal to existing infrastructure with a number of potentially near-term, low cost alternative development paths. Melbana estimates that a successful Pukatea-1 result, consistent with the best estimate of 12.4MMboe, would result in a three-well development plan with a gross production plateau ranging between 6,000 to 10,600 barrels of oil per day for a period in excess of four years and at a very low development cost. Melbana believes oil and gas economics in the Taranaki Basin are robust in the current price environment. TAG Oil (operator of PEP 51153) reported an independent expert valued their 2P Reserves in nearby fields at AUD 20/barrel on an NPV10 basis in mid-2017#. Oil prices have increased by 50% since TAG Oil's valuation was released, suggesting current valuations could be considerably higher. Pukata-1 will also penetrate a secondary objective in the shallower Mt. Messenger sands within the Puka field while drilling to the deeper primary objective Tikorangi Limestone. The likelihood of Pukatea-1 intersecting moveable hydrocarbons in the shallow Mt. Messenger sands within the Puka field is estimated at 50% probability. Oil was first discovered in Puka-1 in the Mt. Messenger sands in 2012 at a depth of approximately 1,300 metres. The oil is a 440 API sweet, waxy crude lined to the Brent benchmark. Puka-1 and Puka-2 were put on extended production tests and achieved initial rates greater than 200 barrels/well/day but were not sustained due to sub-optimal well location and equipment limitations. Puka-1 and Puka-2 were suspended in January 2015 due to falling oil prices and mechanical issues. The re-commencement of production of the Puka field may be viable if moveable oil is intersected in Pukatea-1 in the Mt. Messenger formation.