2009-08-17-2008-07-01-2008-07-01

Purchased interests in licenses 235 and 261 including Douglas, Langia gas discoveries.

Foreland Oil Ltd., a subsidiary of Rift Oil Ltd., (London: RIFT) has acquired interests in petroleum prospecting licenses 235 and 261 in Papua New Guinea from Austral Pacific Energy Ltd., Wellington, New Zealand, (Toronto Venture: APX; Amex: AEN) for US$5 million. The assets include the Douglas and Langia gas discoveries and Austral's 35% interest in the Coral Sea drilling rig. The deal also dismisses all claims or litigation between the companies, which includes Rift's pursuit of Austral's share of exploration costs. Austral chief executive and president Thom Jewell says, "The commercialization of gas resources is a major challenge in the PNG foreland basin. The company made a strategic decision to monetize its gas resources in the ground rather than pursue a significant capital spending program targeting a long-term gas market. To accomplish this goal, Austral has been in negotiations with a number of companies and is pleased to be able to complete this transaction with Rift." Rift chairman Ian Gowie-Smith says, "I am delighted that this dispute is behind us and that we now have total control of our gas fields and so can move forward as rapidly as possible. The recent dramatic oil and LNG price hikes has led to unprecedented interest in Rift's deposits in PNG, which together with the company's existing MOU with Rio Tinto Alcan, give us the potential for a very exciting future."