Octanex N.L. has been advised by OMV New Zealand Limited, the Operator of the Matuku-1 exploration well being drilled in the offshore Taranaki Basin permit PEP 51906, that at 06:00 hours (NZST) on Thursday, 16 January 2014, the well was at a depth of 4,307m MDRT (measured depth below rotary table) and drilling ahead in the 8½" hole.
Since the weekly progress report was released on 14 January 2014, the 8½" hole has penetrated the upper section of the Pakawau Group North Cape Formation (K90) sandstones. These sandstones were found to be less porous than the Kapuni Group Farewell Formation F Sand (T10 sands) encountered above the K90 sands. As with the T10 sands, the K90 sands were water bearing and there were no significant gas or oil shows.