ASX/Media Release

Origin Energy today signed an agreement with Genesis Power Limited to acquire a 50% interest in the Kupe gas field in PML 38146, offshore New Zealand. Consideration for the interest includes a cash payment of NZ $33 million to be paid in a number of instalments, agreement to contract its share of sales gas from the field to Genesis Power, and undertaking operatorship of the field development.

Origin will immediately commence final development planning, including obtaining government and environmental approvals.

The Kupe gas field was discovered in 1986, but has remained undeveloped due to lack of a suitable market.

A recent write-down of reserves in the Maui gas field and an increasing need for gas-fired electricity generation to supplement New Zealand’s hydro-electric scheme has led to increasing gas prices and projected shortfalls in the supply of gas in coming years.

The Kupe field contains Proved and Probable (2P) reserves of over 230 PJ of sales gas plus considerable condensate and LPG, with additional reserves potential within the PML. The final development is expected to be on line by mid 2007, and will likely produce around 20 PJ per annum of sales gas and the order of 1.5 million barrels of liquid hydrocarbons (condensate and LPG).

Commenting on the agreement Origin’s Executive General Manager, Oil and Gas Production, John Piper, said, “This is a significant acquisition for Origin and leverages the experience we have gained developing the Yolla field as part of the BassGas Project in Bass Strait, Australia.

“Reserves in the Yolla and Kupe fields are similar, gas production rates will be essentially the same and there will be substantial liquids production from both fields.

“This investment is consistent with Origin’s long term strategy of seeking oil and gas exploration and development opportunities close to established markets. It also complements our existing LPG supply and distribution interests in Rockgas, which is the largest distributor of LPG in New Zealand.”

The interest will be acquired through Origin Energy Resources New Zealand which has existing exploration activities in New Zealand.

For further information please contact:

Investor Inquiries:
Angus Guthrie
Manager, Investor Relations
Origin Energy
Ph (02) 9220 6558
or Mobile 0417 864 255

Fact Sheet

Equity interests: Origin 50%, Genesis 31% and NZOG 19%
Distance from shore: 30km
Water depth: 30m

Location Map: Kupe Gas Field, New Zealand

Please click on map to view a larger version.