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Widespread completes Kotuku resistivity survey

New Zealand Exchange Limited 
P.O. Box 2959 
Wellington

25 July 62012 

Dear Sir, 

Widespread Portfolios completes  Kotuku resistivity survey

Widespread holds PEP 38526 which is located north of Lake Brunner, on the West Coast, South Island. The permit covers the northern half of the Kotuku Structure and a significant portion of the associated Grey Valley Trough.

As part of the work programme previous holder Widespread Energy drilled a stratigraphic exploration bore in mid March 2010. 

Widespread Portfolios became the new permit holder on 31 March 2011 and subsequently undertook  a detailed analysis of the permit data.

It was subsequently agreed with NZ Petroleum & Minerals that the next logical steps in an exploration programme were:

·         An ERT  (resistivity) survey

·         Reprocessing of existing seismic data

Electrical Resistivity Tomography (ERT) survey

Measuring the resistivity of hydrocarbon bearing rocks is well documented and is one of the most common and sensitive geophysical methods applied when exploring for hydrocarbons.

Relative to water saturated rocks, hydrocarbon rocks show an increase in resistivity and as such a zone of high resistivity may indicate the presence of hydrocarbons.

Resistivity surveys are used when exploring for oil and gas and have been applied in both on and offshore environments for oil and gas.

A resistivity survey complements existing well and seismic data and should provide an indication of the extent and persistence of any shallow oil accumulation at Kotuku.

Worley  Parsons Canada completed the ERT survey earlier this week and the seismic processing is now underway.

Output of the programme & the way forward

A successful outcome of the survey and the seismic re-processing would be the identification of drilling targets that could offer a much greater certainty of success than

has been the case in the past. With these potential targets in hand, Widespread would seek to extend the exploration licence and undertake an active drilling programme early in the new term.   

For and on behalf of the Board,

Chris D Castle

Onekaka