Dear Sir, Widespread Energy announces Kate 1 well outcome...

Dear Sir,

Widespread Energy announces Kate 1 well outcome

Widespread Energy holds 11.7% of Nelson based oil and gas exploration company Green Gate Limited.

Green Gate is has just completed drilling an exploration well (Kate 1) on the onshore Kate Anticline oil prospect near Amberley in PEP 38260, using the Rover drill rig, owned and operated by New Zealand based NRG Drilling.

Wireline logging of Green Gate's Kate-1 well was completed on Saturday.

The main logs confirm that the well is not a discovery, but the evaluation includes several positive factors for Green Gate's ongoing exploration programme in North Canterbury. The logs indicate a substantial thickness of very high quality potential reservoir section (about 70m with porosity in the range of 30%). Green Gate has demonstrated its capability as an efficient and safe operator, in a constructive alliance with Gas2Grid.

The next stage of prospectivity evaluation of Green Gate's North Canterbury exploration permits will be enhanced by the incorporation of several new lines of data from Kate-1: calibration of the seismic control; maturity of source rocks (fluorescent kerogen was observed); the excellent quality of both reservoir and seal.

While Kate-1 as a dry hole condemns the specific location of the well, in light of these positive factors the prospect deserves further detailed evaluation and the prospectivity of the wider permit area has in no way been eliminated.

For and on behalf of the Board,

Chris D Castle

Onekaka, 17 May 2008