07/30/2010 | Press release

June 2010 Quarterly Activities Report

QUARTERLY ACTIVITIES REPORT
                                         JUNE 2010



PPP has seen significant activity since the end of the March quarter.

Early in July, PPP received the requisite approvals to acquire a 5% interest in the Block 07/03 Production
Sharing Contract from Premier Oil Vietnam South BV. Successful completion of this farmin represents an
important step for PPP and we look forward to building on this new country entry position. PPP has now
completed entry to two new ventures since 2009, as part of our South East Asia growth strategy.

Participation in these new ventures, together with the recent Tui wells spudded during the last quarter,
has resulted in exposure to 6 high potential wells since May 2009, when the farmin to CRD-1X well in
Vietnam, an oil and gas discovery, was initiated. Disappointingly, subsequent well results including the
Tui exploration wells have not been successful. However, PPP remains optimistic about the remaining
exploration potential in the Tui Block in New Zealand, JPDA06-103 and in Vietnam Block 07/03 where we
are also focussing on an early appraisal of CRD-1X.

In addition to participation in these attractive ventures, PPP's cash flow remains strong, firmly
underpinned by Tui production, with remaining reserves of 2.23 MMbbls net to PPP at end June. In
addition, the Company has no debt and significant cash reserves of A$87.5 million, which together with
cash deposited in support of the Tui FPSO lease contract, and a further US$10.3 million scheduled to be
returned to PPP during the next few weeks as a result of completion of the Block 07/03 farmin, is
equivalent to approximately A$105 million or approximately 18 c/share.

This strong cash position and broadening regional exposure provides a highly competitive basis for the
Company's continued pursuit of additional attractive new opportunities in the South East Asia and
Australia-New Zealand region with the aim of further expanding the exploration and production portfolio.

Further details on these and other project activities are summarised over.

New Zealand

Tui Area Oil Project (PMP 38158) Taranaki Basin (PPP interest 10%)

Production from the Tui Area oil fields totaled 978,000 barrels (PPP 97,800 barrels) for the June quarter,
averaging 10,733 barrels a day. Production for the financial year end 30 June 2010 was
4.8 million barrels (PPP 0.48 million barrels), while total cumulative field production to the end
of June 2010 was 28.2 million barrels (PPP share 2.8 million barrels). PPP's operating revenue from Tui
during the quarter was US$7,034,000.

At the end of the period three of the four Tui Area wells continued production, while Pateke-3H is shut-in
pending planning and execution of a workover to repair that well's artificial lift system. Production from
Pateke-3H should recommence mid Q4 2010 subject to rig availability and equipment delivery. Forecast
production for the financial year ended 30 June 2011 is 2.8 million barrels (PPP 0.28 million barrels),
including allowance for Pateke-3H downtime.

The Tui SW prospect was evaluated by Tui SW-2 which encountered oil shows in the objective F10
sandstone, the reservoir in the adjacent Tui Field, but evaluation by wireline logging indicated that an
economic accumulation of oil was not present. Tui SW-1, which spudded on 2nd May, had to be
abandoned due to deteriorating hole conditions and difficulties with running the 13 3/8" casing.

Kahu-1 was spudded on 28th June, immediately east of the Tui Oil Field, targeting Kapuni Group
sandstones within a large incised valley feature. The well reached a total measured depth of 3,835
metres, but no significant hydrocarbons were detected within the target sandstone reservoirs.

The results of the Tui SW-2 and Kahu-1 wells will now be analysed and incorporated into Tui field studies
and assessment of remaining prospects.

PEP 38483 Taranaki Basin (PPP interest 14.091%)

The Bahamas shallow gas play continues to be marketed as a farmout opportunity by the Operator
(AWE) on behalf of the JV partners.


Vietnam Block 07/03

PPP Vietnam (PPPV) has completed the acquisition of a 5% interest in the Block 07/03 Production
Sharing Contract from Premier Oil Vietnam South BV (POVS).

Under the terms of the original farmout agreement with POVS, PPPV agreed to acquire a 15% equity in
Block 07/03 by funding part of POVS's costs of the Cá Rng  exploration well, CRD-1X, subject to
PetroVietnam and Vietnamese Government approvals.

Under the terms of the Petroleum Law in Vietnam and the Block 07/03 Production Sharing Contract,
PetroVietnam exercised its right of pre-emption to the extent of 10% of PPPV's proposed 15% farmout
interest

Since receiving notice of PetroVietnam's pre-emption, PPPV has been required to contribute under the
terms of the original farmout agreement with POVS at the level required to earn a 15% interest, pending
approvals of the acquisition of a 5% interest by PPPV and a 10% interest by PetroVietnam Exploration
Production Corporation Ltd.

Following the approvals referred to above, POVS will now refund to PPPV all sums contributed by PPPV
in excess of those commensurate with the acquisition of a 5% interest; the sum involved is approximately
US$10.3m.

The farmin exploration well Cá Rng , CRD-1X, drilled in June 2009, was a discovery, and established
approximately 90m net pay comprising both oil and gas within multiple stacked reservoir layers.
Appraisal planning is currently ongoing, with the possibility of a well being drilled in Q4 2010-Q1 2011.


JPDA 06-103 (PPPV interest 15%)

Work is ongoing to integrate the results of the Loré-1 and Lolotoe-1 exploration wells, and the implications
for prospectivity and selection of targets for future drilling.

Australia

Carnarvon Basin TL/2 (PPP interest 23.2%) and TP/7 (4) (PPP interest 4.157%)

Apache, the Operator, recently proposed the Bath-1 and Barberry-1 exploration wells for drilling in TL/2
and Laurel-1 in TP/7(4). PPP evaluated these opportunities and determined that they did not meet PPP's
risk-reward criteria and hence PPP elected not to participate. Apache has now drilled all of these wells
on a sole risk (100%); none of which found commercially significant hydrocarbons in the exploration
objectives.

The Bath-1 well (TL/2) as prognosed, did encounter oil in the shallower Birdrong Sandstone which is the
oil bearing reservoir of the existing Taunton discovery, and these results will be incorporated into the
existing evaluation.

Under the TL/2 and TP/7 Joint Operating Agreements, non-participating joint venture partners retain the
right to participate in a successful discovery subject to back-in penalties.




Financial Highlights (unaudited)

Assets include:                              Cash held*                                                        A$87.5m
                                             Receivables for oil sales (gross)                                  A$4.7m
                                             Receivables Premier                                             US$10.3m
                                             Tui oil inventory (WMP share)                                    7,755.0 barrels
                                             Income tax refund                                                  A$3.0m

Liabilities include:                         Accrued royalty taxes                                              A$4.2M


PPP is free of any debt. *Cash at 30 June 2010 excludes cash deposited A$5,531,000 (June 2009
A$7,488,000) in support of the Tui FPSO lease contract.


Production & Reserves
                                                                                   Year ended               Period ended
                                                                                   30/06/2009               30/06/2010
Tui Area Fields (PPP 10%)                                                             MMbbls                  MMbbls
PPP total net production                                                                   0.91                      0.48
PPP remaining net reserves                                                                 2.68                      2.23

_________________________________________________________________________________
Notes:
1.   References to PPP, and the company, are to be read as inclusive of the subsidiary companies within the consolidated PPP group.
2.   Where appropriate activities and events occurring after 30 June 2010 have been recorded in this report.
3.   Except where otherwise stated, dollar amounts are in AUD currency




For further information please contact:

Tom Prudence
Chief Executive Officer
Pan Pacific Petroleum NL
Telephone: + 61 2 9957 2177
www.panpacpetroleum.com.au