This just taken from the NZSX page... Same as posted earlier...

This just taken from the NZSX page... Same as posted earlier today....

New Zealand Exchange Limited
P.O. Box 2959
Wellington


9 May 2008

Dear Sir,

Widespread Energy advises Kate 1 well now in progress

Widespread Energy holds 11.7% of Nelson based oil and gas exploration company Green Gate Limited. After four years engaged in exploration and data analysis, Green Gate determined to drill an exploration well (Kate 1) on the onshore Kate Anticline oil prospect near Amberley in PEP 38260.

The Rover drill rig, owned and operated by New Zealand based NRG Drilling, arrived on site earlier on site this week after completing a well in the Wairarapa.

It's very pleasing to be able to report that the Kate 1 well was spudded in last night and is already at a depth of 60 metres.

The well is expected to be drilled to a depth of 1,100 metres and should be completed, all going well, within 2 weeks.

For and on behalf of the Board,

Chris D Castle

Onekaka, 9 May 2008


Background

Widespread Energy shareholders have already been advised that ASX listed Gas2Grid (ASX:GGX) has entered into an agreement to farm-in to the onshore portion of Canterbury Basin exploration permit PEP 38260 by funding the Kate 1 well.
Widespread Energy therefore has an effective interest of 5.27% in the onshore portion of PEP 38260 (being 11.7% of 45%) and 11.7% in the offshore portion of PEP 38260.

The Kate-1 well will test an anticlinal structure, approximately 50 kilometres north of Christchurch, which has prominent surface expression as well as seismic evidence of sub-surface closures in the approximately 1050 metre thick sedimentary section. The primary target is sandstone reservoirs in the Late Cretaceous Broken River Formation coal measures (450-1050 metres), with secondary targets in younger sandstones and limestones. The structure as mapped has the potential to reservoir upwards of 25 million barrels of oil in place in the Broken River formation.
An oil seep was uncovered during geotechnical works on the flank of the anticline in 2003, and soil gas surveys have confirmed the presence of thermogenic hydrocarbons in the vicinity of the mapped structure.