Release: Pacific Oil & Gas: Upstream investment in Indonesia

Jakarta,15 December 2004 - Pacific Oil & Gas Ltd., an independent energy resource development company, announced that it has completed its acquisition of the 25% participating interest in the Jambi Merang Block PSC from YPF International S.A., a subsidiary of Repsol YPF.

The Jambi Merang JOB (Joint Operating Body) now comprises Pacific Oil & Gas (Jambi Merang) Limited (25%), Amerada Hess (Indonesia-Jambi Merang) Limited (25%) and Pertamina (50%). Assistant Operatorship has been transferred to Amerada Hess (Indonesia- Jambi Merang) from the previous Assistant Operator, YPF Indonesia. The Jambi Merang Block, located in South Sumatra , includes the Gelam field and the gas and condensate fields of Pulau Gading and Sun gai Kenawang.

Mr. Arthur Ling , the President of Pacific Oil & Gas Limited stated that this investment further demonstrates the company's strong interest in Indonesia 's oil and gas sector.

The Gelam field has been in operation since 1998 under a unitization arrangement with ConocoPhillips. The development plan for the Pulau Gading field has been approved and is under implementation. Since then a second discovery of Sungai Kenawang has been made. The expanded development plan for both the Pulau Gading and the Sungai Kenawang fields is being finalized.

Pacific Oil & Gas Ltd. invests in energy projects along the energy value chain from upstream field development to LNG plants, receiving terminals, power plants and gas transmission lines. (end of release)