Document:

EXHIBIT 4.9 

“UNLESS PERMITTED
UNDER APPLICABLE CANADIAN SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY
MUST NOT TRADE THE SECURITY BEFORE JANUARY 21, 2008.”

“WITHOUT PRIOR
WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE
SECURITIES LEGISLATION, THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE
SHARES ISSUABLE UPON THE EXERCISE OF SUCH WARRANTS MAY NOT BE SOLD,
TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF
THE TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A
CANADIAN RESIDENT UNTIL JANUARY 21, 2008.”

“THIS WARRANT AND
THE SECURITIES DELIVERABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER
THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS WARRANT
MAY NOT BE EXERCISED BY OR ON BEHALF OF A “U.S. PERSON” OR A PERSON IN THE
UNITED STATES UNLESS THE WARRANT AND THE UNDERLYING SECURITIES HAVE BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES
LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION
REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY
REGULATION S UNDER THE U.S. SECURITIES ACT.”

	
 

	
Issue Date:
 September 30, 2007

	
Expiry Date:
 September 30, 2009

	
Contingent
 Expiry Date: September 30, 2010

	
Hold Period
 Expiry: January 21, 2008

WARRANT
CERTIFICATE

AUSTRAL
PACIFIC ENERGY LTD. 
(incorporated
under laws of the British Columbia, Canada)

with a head office at:

Level 3, 40 Johnston Street

Wellington 6011 New Zealand

Telephone: 6444950888 Fax: 6444950889

THE RIGHT TO PURCHASE COMMON SHARES UNDER
THIS WARRANT CERTIFICATE EXPIRES AT 5:00 P.M. (WELLINGTON, NEW ZEALAND TIME) ON
THE LATER OF THE EXPIRY DATE OR THE CONTINGENT EXPIRY DATE IF THE CONTINGENT
EXPIRY CONDITION (AS DEFINED HEREIN) HAS OCCURRED.

ANY SHARES
ACQUIRED BY EXERCISE PRIOR TO THE HOLD PERIOD EXPIRY WILL BE SUBJECT TO RESALE
RESTRICTIONS UNTIL THAT DATE AND WILL BEAR A LEGEND TO THIS EFFECT.

	
 

	
150,000 Common Share Purchase Warrants

	
 

	
THIS IS TO CERTIFY THAT, for value received,
 

MORGAN KEEGAN

Suite 1650, 711 Louisiana

Houston, Texas 77002

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or his/her/its
lawful assignee (hereinafter called the “Holder”) is entitled to subscribe for
and purchase up to 150,000 fully
paid and non-assessable common shares without par value in the capital of AUSTRAL PACIFIC ENERGY LTD. (hereinafter
called the “Issuer”) at any time on or before 5:00 p.m. (the “Expiry Time”) on
the Expiry Date, at a price of USD$ 1.30 during the 24 months (or 36 months if
the Contingent Expiry Date Condition is met) following the Issue Date (the
“Exercise Price”).

The rights
represented by this Warrant Certificate may be exercised by the Holder, in
whole or in part (but not as to a fraction of a share) by surrender of this
Warrant Certificate (properly endorsed if required) to the Issuer at its
business office, Level 3, 40 Johnston Street, Wellington 6011, New Zealand,
Attention: the Secretary, together with cash or payment by bank transfer
payable to or to the order of the Issuer in payment of the purchase price of
the number of shares subscribed for.

As of the
Issue Date, the validity of this Warrant is subject to its acceptance by the
TSX Venture Exchange and the American Stock Exchange; which approvals the
Issuer hereby agrees to use its best efforts to obtain from and after the Issue
Date.

IN WITNESS
WHEREOF the Issuer has caused this Warrant Certificate to be executed by its
duly authorized officer effective the Issue Date.

AUSTRAL PACIFIC ENERGY LTD.

	
 

	
 

	
Per:

	
 

	
 

	 

	
 

	
Authorized
 Signatory

SCHEDULE “A”

TERMS AND CONDITIONS

ATTACHED TO WARRANT CERTIFICATE ISSUED BY
AUSTRAL PACIFIC ENERGY LTD.

(the “Issuer”)

Each common
share purchase warrant of the Issuer, whether single or part of a series, is
subject to these Terms and Conditions as they were at the date of issue of such
common share purchase warrant.

ARTICLE 1

INTERPRETATION

Definitions

1.1 In these Terms and Conditions, unless there is something in the subject matter or
context inconsistent therewith:

	
 

	
 

	
 

	
 

	
(a) “Expiry
 Date” means the date described as such on the face page of the Warrant
 Certificate;

	
 

	
 

	
 

	
 

	
(b) “Expiry
 Time” means 5:00 p.m. Wellington, New Zealand time on the Expiry Date;

	
 

	
 

	
 

	
 

	
(c)
 “Contingent Expiry Date Condition” means that on or before the Expiry Date,
 the Issuer’s listing status on the TSX Venture Exchange has been upgraded to
 a Tier 1 Issuer or a Toronto Stock Exchange listing has been obtained;

	
 

	
 

	
 

	
 

	
(d)
 “Contingent Expiry Date” means the date described as such on the face page of
 the Warrant Certificate;

	
 

	
 

	
 

	
 

	
(e) “Holder”
 means the registered owner of the Warrant;

	
 

	
 

	
 

	
 

	
(f) “Issuer”
 includes a successor corporation;

	
 

	
 

	
 

	
 

	
(g)
 “Issuer’s auditor” means the accountant duly appointed as auditor of the
 Issuer;

	
 

	
 

	
 

	
 

	
(h) “Person”
 means an individual, corporation, partnership, trustee or any unincorporated
 organization, and words importing persons have a similar meaning;

	
 

	
 

	
 

	
 

	
(i) “Shares”
 or “shares” means common shares in the capital of the Issuer as constituted
 as of the Issue Date and any shares resulting from any event referred to in
 §4.7;

	
 

	
 

	
 

	
 

	
(j)
 “Warrant” means a common share purchase warrant as evidenced by the Warrant
 Certificate to which these Warrant Terms are appended, each of which Warrant entitles
 the holder to purchase one (1) Share of the Issuer (subject to adjustment) on
 or before the Expiry Time at the Exercise Price set forth on the Warrant
 Certificate, subject to these Warrant Terms;

	
 

	
 

	
 

	
 

	
(k) “Warrant
 Holder” or “Holder” means the recorded holder of a Warrant;

	
 

	
 

	
 

	
 

	
(l) “Warrant
 Holder’s Request” means an instrument signed in one or more counterparts by
 Warrant Holders entitled to purchase in the aggregate not less than
 twenty-five percent of the number of Shares which could be purchased pursuant
 to all the Warrants outstanding of the same

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issue for
 the time being, requesting the Issuer to take some action or proceeding as
 specified therein;

	
 

	
 

	
 

	
 

	
(m) “Warrant
 Terms” means the terms and conditions pertaining to the Warrants as set forth
 in this Schedule “A”; and 

	
 

	
 

	
 

	
 

	
(n) words
 importing the singular number include the plural and vice versa, and words
 importing the masculine gender include feminine and neuter genders.

Interpretation Not Affected By Headings

1.2 The
division of the Warrant Terms into articles and sections, and the insertion of
headings are for convenience of reference only and shall not affect the
construction or interpretation thereof.

Applicable Law

1.3 The
Warrants shall be construed in accordance with the laws of the Province of
British Columbia and the laws of Canada applicable thereto and shall be treated
in all respects as legal contracts under the laws of British Columbia.

ARTICLE 2

ISSUE OF WARRANTS

Additional Warrants

2.1 Subject to
the provisions of §4.7 hereof, the Issuer may at any time and from time to time
issue warrants or grant options or similar rights to purchase shares of its
capital stock without affecting the terms hereof.

Issue In Substitution For Lost Warrants

	
 

	
 

	
 

	
2.2

	
(a) In case
 a Warrant Certificate shall become mutilated, lost, destroyed or stolen, the
 Issuer in its discretion may issue and deliver a new Warrant Certificate of
 like date and tenor as the one mutilated, lost, destroyed or stolen in
 exchange for, and in place of, and upon cancellation of such mutilated
 Warrant Certificate, or in lieu of and in substitution for such lost,
 destroyed or stolen Warrant Certificate, and the substituted Warrant
 Certificate shall be entitled to the benefit hereof and rank equally in
 accordance with its terms with all other Warrant Certificates of the same
 issue.

	
 

	
 

	
 

	
 

	
(b) The
 applicant for the issue of a new Warrant Certificate pursuant hereto shall
 bear the cost of the issue thereof and in the case of loss, destruction or
 theft furnish to the Issuer such evidence of ownership, and of loss,
 destruction or theft of the Warrant Certificate so lost, destroyed or stolen
 as shall be satisfactory to the Issuer in its discretion; and such applicant
 may also be required to furnish indemnity in amount and form satisfactory to
 the Issuer in its discretion and shall pay the reasonable charges of the
 Issuer in connection therewith.

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Warrant Holder Not A Shareholder

2.3 The
holding of a Warrant shall not constitute the Holder a shareholder of the
Issuer, nor entitle the Holder to any right or interest in respect thereof,
except as in the Warrant Certificate expressly provided.

ARTICLE 3

OWNERSHIP AND TRANSFER

Exchange Of Warrants

	
 

	
 

	
 

	
3.1

	
(a) A
 Warrant Certificate in any authorized denomination may, upon compliance with
 the reasonable requirements of the Issuer, be exchanged for a Warrant
 Certificate(s) in any other authorized denomination of the same issue
 entitling the Holder to purchase an equal aggregate number of Shares at the
 Exercise Price and on the same terms as the Warrant Certificate so exchanged.

	
 

	
 

	
 

	
 

	
(b) Warrants
 may be exchanged only upon application to the Issuer and surrender of the
 Warrant Certificate. Any Warrants tendered for exchange shall be surrendered
 to the Issuer and cancelled.

Charges For Exchange

3.2 On
exchange of Warrants, the Issuer, except as otherwise herein provided, may
charge a fee for each new Warrant Certificate issued, and payment of any
transfer taxes or governmental or other charges required to be paid shall be
made by the party requesting such exchange.

Ownership And Transfer Of Warrants

3.3 The Issuer
may deem and treat the Holder of a Warrant as the absolute owner of such
Warrant for all purposes and shall not be affected by any notice or knowledge
to the contrary. The Issuer shall not be bound to enquire into the title of any
Holder. Warrants shall be transferable and shall pass by execution and delivery
to the Issuer of a transfer form in the form of Appendix C hereto but subject
to evidence satisfactory to the Issuer of compliance with applicable securities
legislation.

Transfer Restriction for US Persons

3.4 These
Warrants and the common shares issued upon exercise of these Warrants (the
“Warrant Shares”) are “restricted securities”, as defined in Rule 144 of the United
States Securities Act of 1933 (the “U.S. Securities Act”), and may only be
transferred pursuant to an effective registration statement under the U.S.
Securities Act, pursuant to a transaction outside of the United States in
accordance with Rule 904 of Regulation S of the U.S. Securities Act or pursuant
to a transaction that is exempt from the registration requirements of the U.S.
Securities Act.

Notice To Warrant Holder

3.5 Unless
herein otherwise expressly provided, any notice to be given hereunder to a
Warrant Holder shall be deemed to be validly given, if mailed to the address of
the Warrant Holder as set out on the Warrant Certificate. Any notice so given
shall be deemed to have been received five days from the date of mailing.

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ARTICLE 4

EXPIRY DATE AND EXERCISE OF WARRANTS

Method Of Exercise Of Warrants

4.1 The right
to purchase Shares conferred by a Warrant may be exercised by the Holder
surrendering the Warrant Certificate, with a duly completed and executed
subscription in the form attached hereto as Appendix B by cash, certified
cheque, bank draft or money order payable to, or to the order of the Issuer at
par in Wellington, New Zealand, for the Exercise Price applicable at the time
of surrender in respect of the Shares subscribed for in lawful money of the
United States to the Issuer at its principal office as indicated on the face
page of the Warrant. 

Effect Of Exercise Of Warrants

	
 

	
 

	
 

	
4.2

	
(a) Upon
 surrender and payment as aforesaid, the Shares so subscribed for shall be
 deemed to have been issued, and such person shall be deemed to have become
 the holder of such Shares on the date of such surrender and payment, and such
 Shares shall be issued at the Exercise Price in effect on the date of such
 surrender and payment.

	
 

	
 

	
 

	
 

	
(b) Within
 five business days after surrender and payment as aforesaid, the Issuer shall
 forthwith cause to be delivered to the person in whose name the Shares so
 subscribed for are to be issued as specified in such subscription a
 certificate for the appropriate number of Shares not exceeding those which
 the Warrant Holder is entitled to purchase pursuant to the Warrant
 Certificate surrendered.

Subscription For Less Than Entitlement

4.3 A Holder
may subscribe for and purchase a number of Shares less than the number which he
is entitled to purchase pursuant to the surrendered Warrant Certificate. In the
event of any purchase of a number of Shares less than the number which can be
purchased pursuant to a Warrant Certificate, the Holder, upon exercise thereof,
shall in addition be entitled to receive a new Warrant Certificate in respect
of the balance of the Shares which he was entitled to purchase pursuant to the
surrendered Warrant Certificate and which were not then purchased.

Warrants For Fractions Of Shares

4.4 To the extent
that a Holder is entitled to receive on the exercise or partial exercise of
Warrants a fraction of a Share, such right may be exercised in respect of such
fraction only in combination with another Warrant which in the aggregate
entitle the Holder to receive a whole number of Shares.

Expiration Of Warrants

4.5 After the
expiration of the period within which a Warrant is exercisable all rights
thereunder shall wholly cease and terminate, and such Warrant shall be void and
of no effect.

Exercise Price

4.6 The
Exercise Price shall be subject to adjustment in the events and in the manner
described herein.

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Adjustments

4.7 From and
after the date hereof, the Exercise Price and the number of Shares deliverable
upon the exercise of the Warrants will be subject to adjustment as follows:

	
 

	
 

	
 

	
(a) In case
 of any reclassification of the Shares or change of the Shares into other
 shares, or in case of the consolidation, merger, reorganization or
 amalgamation of the Issuer with or into any other company or entity which
 results in any reclassification of the Shares or a change of the Shares into
 other shares, or in case of any transfer of the undertaking or assets of the
 Issuer as an entirety or substantially as an entirety to another person (any
 such event, a “Reclassification of Shares”), at any time prior to the Expiry
 Time, the Holder shall, after the effective date of such Reclassification of
 Shares and upon exercise of the right to purchase Shares hereunder, be
 entitled to receive, and shall accept, in lieu of the number of Shares to
 which the Holder was theretofore entitled upon such exercise, the kind and
 amount of shares and other securities or property which the Holder would have
 been entitled to receive as a result of such Reclassification of Shares if,
 on the effective date thereof, the Holder had been the registered holder of
 the number of Shares to which the Holder was theretofore entitled upon such
 exercise. If necessary, appropriate adjustments shall be made in the
 application of the provisions set forth in this section with respect to the
 rights and interests thereafter of the Holder in order that the provisions
 set forth in this section shall thereafter correspondingly be made applicable
 as nearly as may be reasonable in relation to any shares or other securities
 or property thereafter deliverable upon the exercise of the Warrants
 evidenced hereby.

	
 

	
 

	
 

	
(b) If and
 whenever at any time prior to the Expiry Time the Issuer shall:

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)
 subdivide or change the Shares into a greater number of shares;

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)
 consolidate, reduce or combine the Shares into a lesser number of shares; or

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii) issue
 Shares or Convertible Securities (such term as defined below in §(g)) to all
 or substantially all of the holders of Shares by way of a stock dividend or
 other distribution on the Shares payable in Shares or Convertible Securities;

	
 

	
 

	
 

	
(any such
 event, a “Capital Reorganization”), the Exercise Price shall, on the
 effective date, in the case of a subdivision or consolidation, or on the
 record date, in the case of a stock dividend, be adjusted by multiplying the
 Exercise Price in effect on such effective date or record date by a fraction:
 (A) the numerator of which shall be the number of Shares outstanding
 immediately before giving effect to such Capital Reorganization; and (B) the
 denominator of which is the number of Shares outstanding immediately after
 giving effect to such Capital Reorganization. The number of Shares
 outstanding shall include the deemed conversion into or exchange for Shares
 of any Convertible Securities distributed by way of stock dividend or other
 such distribution. Such adjustment shall be made successively whenever any
 Capital Reorganization shall occur.

	
 

	
 

	
 

	
(c) Any
 issue of Shares or Convertible Securities by way of a stock dividend or other
 such distribution shall be deemed to have been made on the record date
 thereof for the purpose of calculating the number of outstanding Shares under
 §(d) and §(e).

	
 

	
 

	
 

	
(d) If and
 whenever at any time prior to the Expiry Time, the Issuer shall fix a record
 date for the issuance of rights, options or warrants (other than the Warrants
 evidenced hereby) to all or substantially all the holders of Shares entitling
 them, for a period expiring not more than 45 days

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after such
record date, to subscribe for or purchase Shares or Convertible Securities at a
price per share (or having a conversion or exchange price per share) of less
than 95% of the Fair Market Value (as defined below) of the Shares on such
record date (any such event, a “Rights Offering”), the Exercise Price shall be
adjusted immediately after such record date so that it shall equal the price
determined by multiplying the Exercise Price in effect on such record date by a
fraction: 

	
 

	
 

	
 

	
(i) the numerator
  of which shall be the aggregate of: (A) the number of Shares outstanding on
  such record date; and (B) a number determined by dividing whichever of the
  following is applicable by the Fair Market Value of the Shares on the record
  date: (1) the amount obtained by multiplying the number of Shares which the
  holders of Shares are entitled to subscribe for or purchase by the
  subscription or purchase price; or (2) the amount obtained by multiplying the
  maximum number of Shares which the holders of Shares are entitled to receive
  on the conversion or exchange of the Convertible Securities by the conversion
  or exchange price per share; and 

	
 

	
 

	
 

	
(ii) the
  denominator of which shall be the aggregate of: (A) the number of Shares
  outstanding on such record date; and (B) whichever of the following is
  applicable: (1) the number of Shares which the holders of Shares are entitled
  to subscribe for or purchase; or (2) the maximum number of Shares which the
  holders of Shares are entitled to receive on the conversion or exchange of
  the Convertible Securities. 

Any Shares
owned by or held for the account of the Issuer shall be deemed not to be
outstanding for the purpose of any such computation. Such adjustment shall be
made successively whenever such a record date is fixed. 

To the extent
that such Rights Offering is not so made or any such rights, options or
warrants are not exercised prior to the expiration thereof, the Exercise Price
shall then be readjusted to the Exercise Price which would then be in effect if
such record date had not been fixed or if such expired rights, options or
warrants had not been issued. 

(e) If and
whenever at any time prior to the Expiry Time, the Issuer shall fix a record
date for the distribution to all or substantially all the holders of Shares of:

	
 

	
 

	
 

	
(i) shares
  of any class, whether of the Issuer or any other company;

	
 

	
 

	
 

	
(ii) rights,
  options or warrants;

	
 

	
 

	
 

	
(iii)
  evidences of indebtedness; or

	
 

	
 

	
 

	
(iv) other
  assets or property; 

and if such
distribution does not constitute a Capital Reorganization or a Rights Offering
or does not consist of rights, options or warrants entitling the holders of
Shares to subscribe for or purchase Shares or Convertible Securities for a
period expiring not more than 45 days after such record date and at a price per
share (or having a conversion or exchange price per share) of at least 95% of
the Fair Market Value of the Shares on such record date (any such non-excluded
event, a “Special Distribution”), the Exercise Price shall be adjusted
immediately after such record date so that it shall equal the price determined
by multiplying the Exercise Price in effect on such record date by a fraction:
(A) the numerator of which shall be the amount by which (1) the amount obtained
by multiplying the number of Shares outstanding on such record date by the Fair
Market Value of the Shares on such record date, exceeds (2) the aggregate fair
market value 

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(as determined
by the external auditors of the Issuer, which determination shall be
conclusive) to the holders of such Shares of such Special Distribution; and (B)
the denominator of which shall be the total number of Shares outstanding on
such record date multiplied by such Fair Market Value. 

Any Shares
owned by or held for the account of the Issuer shall be deemed not to be
outstanding for the purpose of any such computation. Such adjustment shall be
made successively whenever such a record date is fixed. 

To the extent
that such Special Distribution is not so made or any such rights, options or
warrants are not exercised prior to the expiration thereof, the Exercise Price
shall then be readjusted to the Exercise Price which would then be in effect if
such record date had not been fixed or if such expired rights, options or
warrants had not been issued. 

(f) On an
adjustment of the Exercise Price pursuant to §(b), §(d) or §(e), the number of
Shares purchasable on exercise of the Warrants will be adjusted, effective at
the same time as the adjustment of the Exercise Price, by multiplying the
number of Shares so purchasable immediately before the adjustment of the
Exercise Price by a fraction which is the reciprocal of the fraction used in
the adjustment of the Exercise Price. To the extent that the Exercise Price is
readjusted pursuant to §(d) or §(e), the number of Shares purchasable on
exercise of the Warrant will be readjusted contemporaneously. 

(g) For the
purpose of this Warrant, “Convertible Security” means a security convertible
into or exchangeable for a Share. 

(h) No
adjustment pursuant to this Warrant Certificate shall be made in respect of
dividends (payable in cash or Shares) declared payable on the Shares in any
fiscal year of the Issuer to the extent that the aggregate value of such
dividends, when aggregated with the aggregate value of any dividends previously
declared payable on the Shares in such fiscal year, do not exceed 50% of the
aggregate consolidated net income of the Issuer, before extraordinary items,
for its immediately preceding fiscal year. 

(i) In any
case in which this Warrant Certificate shall require that an adjustment shall
become effective immediately after a record date for an event referred to
herein, the Issuer may defer, until the occurrence of such event, issuing to
the Holder, upon the exercise of the Warrants evidenced hereby after such
record date and before the occurrence of such event, the additional Shares or
securities or other property issuable upon such exercise by reason of the
adjustment required by such event; provided, however, that the Issuer shall
deliver to the Holder an appropriate instrument evidencing the Holder’s right
to receive such additional Shares or securities or other property upon the
occurrence of the event requiring such adjustment and the right to receive any
distributions made on any such additional Shares or securities or other
property on and after such exercise. 

(j) The
adjustments provided for in this Warrant Certificate are cumulative, shall, in
the case of adjustments to the Exercise Price, be computed to the nearest
one-tenth of one cent and shall apply (without duplication) to successive
Reclassifications of Shares, Capital Reorganizations, Rights Offerings and
Special Distributions; provided that, notwithstanding any other provision of
this section, no adjustment of the Exercise Price shall be required unless such
adjustment would require an increase or decrease of at least 1% of the Exercise
Price then in effect (except upon a consolidation of the outstanding Shares);
provided, however, that any adjustments which by 

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reason of this
paragraph are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. 

(k) No
adjustment in the number of Shares which may be purchased upon exercise of the
Warrants evidenced hereby or in the Exercise Price shall be made pursuant to
this Warrant Certificate if the Holder is entitled to participate in such event
on the same terms mutatis mutandis as if the Holder had exercised the Warrants
evidenced hereby for Shares prior to the effective date or record date of such
event. 

(l) In the
event of any question arising with respect to the adjustments provided in this
Warrant Certificate, such question shall conclusively be determined by a firm
of chartered accountants appointed by the Issuer and acceptable to the Holder
(who may be the Issuer’s auditors). Such accountants shall have access to all
necessary records of the Issuer and such determination shall be binding upon
the Issuer and the Holder. 

(m) As a
condition precedent to the taking of any action which would require an
adjustment in the subscription rights pursuant to the Warrant, including the
Exercise Price and the number of such classes of shares or other securities or
property which are to be received upon the exercise thereof, the Issuer shall
take all corporate action which may, in the opinion of external counsel, be
necessary in order that the Issuer has reserved and there will remain unissued
out of its authorized capital a sufficient number of Shares for issuance upon
the exercise of the Warrants evidenced hereby, and that the Issuer may validly
and legally issue as fully paid and non-assessable all the shares of such
classes or other securities or may validly and legally distribute the property
which the Holder is entitled to receive on the full exercise thereof in
accordance with the provisions hereof. 

(n) At least
21 days’ prior to the effective date or record date, as the case may be, of any
event which requires an adjustment in the subscription rights pursuant to this
Warrant Certificate, including the Exercise Price and the number and classes of
shares or other securities or property which are to be received upon the
exercise thereof, the Issuer shall give notice to the Holder of the particulars
of such event and the required adjustment. 

4.8 For the purpose
of any computation under these Warrant Terms, the “Fair Market Value” of the
Shares at any date shall be determined as the weighted average closing price
per Share of the Issuer for the 20 consecutive trading days immediately before
such date on the principal stock exchange or over-the-counter market as the
Shares of the Issuer may then be listed or quoted (as the case may be), or, if
the shares in respect of which a determination of Fair Market Value is being
made are not listed on any stock exchange or quoted for trading by a recognized
over-the-counter market, the Fair Market Value shall be determined by an
independent brokerage or accounting firm selected by the Issuer and acceptable
to the Holder. 

Hold Period 

4.9 The Shares
received by the Warrant Holder upon the exercise of the Warrants shall be
subject to a hold period referred to on the Warrant Certificate. 

Restrictive Legend for U.S. Persons 

4.10 If the
company has reason to believe the holder of this Warrant is a resident of the
United States, a U.S. Person, as defined in Regulation S of the U.S. Securities
Act, or is otherwise subject to the 

- 9 -

securities
laws of the United States, any certificates representing Warrant Shares will
bear the following legend: 

	
 

	
 

	
 

	
 

	
“THE
  SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED
  STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”). THE
  HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE
  COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED
  ONLY (A) TO THE COMPANY; (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH
  RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT OR (C) IN ACCORDANCE
  WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY
  RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE
  STATE SECURITIES LAWS; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE
  REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES
  LAWS, AND, IN THE CASE OF PARAGRAPH (C) OR (D), THE SELLER FURNISHES TO THE
  COMPANY AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE
  SATISFACTORY TO THE COMPANY TO SUCH EFFECT. DELIVERY OF THIS CERTIFICATE MAY
  NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES
  IN CANADA. PROVIDED THAT THE COMPANY IS A “FOREIGN ISSUER”, AT THE TIME OF
  SALE AND THESE SECURITIES ARE BEING SOLD IN COMPLIANCE WITH RULE 904 OF
  REGULATIONS S, A NEW CERTIFICATE BEARING NO LEGEND MAY BE OBTAINED FROM THE
  TRANSFER AGENT FOR THE COMPANY UPON DELIVERY OF THIS CERTIFICATE AND A DULY
  EXECUTED DECLARATION, IN A FORM SATISFACTORY TO THE TRANSFER AGENT AND THE
  COMPANY, TO THE EFFECT THAT SUCH SALE IS BEING MADE IN ACCORDANCE WITH RULE
  904 OF REGULATION S UNDER THE U.S. SECURITIES ACT.” 

	
 

	
 

	
ARTICLE 5

	
COVENANTS BY THE ISSUER

Covenants 

5.1 The Issuer
covenants with the Holder that so long as any Warrants remain outstanding: 

(a) it will
reserve and keep available a sufficient number of Shares for the purpose of
enabling it to satisfy its obligations to issue Shares upon the exercise of the
Warrants in the event that the Issuer does not have an unlimited number of
Shares authorized; 

(b) it will
cause the Shares from time to time acquired pursuant to the exercise of the
Warrants to be duly issued and delivered in accordance with the terms hereof; 

(c) all Shares
which shall be issued upon exercise of the right to purchase provided for
herein shall be fully paid and non-assessable; 

(d) it will
use its best efforts to maintain its corporate existence; 

(e) it will
use its best efforts to ensure that all Shares of the Issuer outstanding or
issuable from time to time continue to be or are listed and posted for trading
on the TSX Venture Exchange or the Toronto Stock Exchange; 

(f) it will make all requisite
filings under applicable Canadian securities legislation including those
necessary to remain a reporting issuer not in default in the provinces where it
is a reporting 

- 10 -

	
 

	
 

	
 

	
issuer, as
  that term is defined in the securities legislation of that jurisdiction, and
  in any other jurisdiction in which the Issuer becomes a reporting issuer; and
  

	
 

	
 

	
 

	
(g)
  generally, it will well and truly perform and carry out all of the acts or
  things to be done by it as provided herein. 

ARTICLE 6 

MEETING OF WARRANT HOLDERS

Right To Convene Meeting 

6.1 The Issuer
may at any time and from time to time, and shall on receipt of a Warrant
Holder’s Request, convene a meeting of the Holders of Warrants of the same
issue. In the event of the Issuer failing within fifteen days after receipt of
such Warrant Holder’s Request as aforesaid to give notice convening a meeting,
such Warrant Holders may convene a meeting. Every such meeting shall be held in
the City of Wellington, New Zealand. 

Notice 

6.2 At least
21 days’ notice of any meeting shall be given to the Warrant Holders and to the
Issuer unless the meeting has been called by it. Such notice shall state the
time and place of the meeting and shall state the general nature of the
business to be transacted thereat and it shall not be necessary for any such
notice to set out the terms of any resolution to be proposed or any of the
provisions of this Article. 

Chairman 

6.3 Some
person nominated in writing by the Issuer shall be Chairman of the meeting and
if no person is so nominated, or if the person so nominated is not present
within fifteen minutes from the time fixed for the holding of the meeting, the
Warrant Holders present in person or by proxy shall choose some person present
to be Chairman. 

Quorum 

6.4 At any
meeting of Warrant Holders a quorum shall consist of Warrant Holders present in
person or by proxy and entitled to purchase at least twenty-five percent of the
aggregate number of shares which could be purchased pursuant to all the then
outstanding Warrants of the same issue, provided that at least two persons
entitled to vote thereat are personally present. If, at any such meeting, a
quorum is not present within half an hour after the time appointed for the
meeting, then the meeting, if convened by Warrant Holders or on a Warrant
Holder’s Request, shall be dissolved; but in any other case the meeting shall
be adjourned to the same day in the next week (unless such day is a non-business
day, in which case it shall be adjourned to the next following business day
thereafter) at the same time and place. At the adjourned meeting the Warrant
Holders present in person or by proxy shall form a quorum and may transact the
business for which the meeting was originally convened. 

Power To Adjourn 

6.5 The
Chairman of any meeting at which a quorum of Warrant Holders is present may
with the consent of the meeting adjourn any such meeting and no notice of such
adjournment need be given except such notice, if any, as the meeting may
prescribe. 

- 11 -

Show Of Hands 

6.6 Every
question, other than extraordinary resolutions, submitted to a meeting shall be
decided in the first place by a majority of the votes given on a show of hands.
At any such meeting, unless a poll is duly demanded as herein provided, a
declaration by the Chairman that a resolution has been carried or carried
unanimously or by a particular majority shall be conclusive evidence of the
fact. 

Poll 

6.7 On any
question submitted to a meeting and after a vote by a show of hands, when
demanded by the Chairman or by one or more Warrant Holders, a poll shall be
taken in such manner as the Chairman shall direct. Questions, other than
extraordinary resolutions, shall be decided by a majority of the votes cast on
the poll. 

Voting 

6.8 On a show
of hands every person who is present and entitled to vote, whether as a Warrant
Holder or as proxy, or both, shall have one vote. On a poll each Warrant Holder
present in person or represented by proxy shall be entitled to one vote in
respect of each Share which he is entitled to purchase pursuant to the Warrant
then held by him. A proxy need not be a Warrant Holder. 

Regulations 

6.9 The Issuer
may from time to time, upon notice to the Warrant Holders make and vary such
regulations as it shall think fit: 

	
 

	
 

	
 

	
(a) for the
  use of a proxy or proxies to represent Warrant Holders at any such meeting
  and at any adjournment thereof, in the same manner and with the same effect
  as though the Holder was the actual bearer or holder of the Warrant specified
  therein; 

	
 

	
 

	
 

	
(b) for the
  deposit of voting certificates and/or instruments appointing proxies at such
  place and time as the Issuer or the Warrant Holders convening the meeting, as
  the case may be, may in the notice convening the meeting direct; 

	
 

	
 

	
 

	
(c) for the
  deposit of voting certificates and/or instruments appointing proxies at some
  approved place or places other than the place at which the meeting is to be
  held and enabling particulars of such voting certificates and/or instruments
  appointing proxies to be mailed or faxed before the meeting to the Issuer at
  the place where the same is to be held and for the voting of proxies so
  deposited as though the instruments themselves were produced at the meeting;
  and 

	
 

	
 

	
 

	
(d) for the
  form of the instrument of proxy. 

Any
regulations so made shall be binding and effective and the votes given in
accordance therewith shall be valid and shall be counted. Save as such
regulations may provide, the only persons who shall be recognized at any
meeting as the Holder of a Warrant, or as entitled to vote or be present at the
meeting in respect thereof, shall be persons who produce Warrants at the
meeting. 

Issuer May Be Represented 

6.10 The
Issuer by its officers and directors, and the legal advisors of the Issuer may
attend any meeting of Warrant Holders, but shall have no vote as such. 

- 12 -

Powers Exercisable By Extraordinary
Resolution 

6.11 In
addition to all other powers conferred upon them by any other provisions hereof
or by law, Warrant Holders at a meeting shall have the following powers,
exercisable from time to time by extraordinary resolution: 

	
 

	
 

	
 

	
(a) power to
  enforce any of the covenants on the part of the Issuer contained in the
  Warrants or to enforce any of the rights of the Warrant Holders in any manner
  specified in such extraordinary resolution or to refrain from enforcing any
  such covenant or right; 

	
 

	
 

	
 

	
(b) power to
  enforce any of the covenants on the part of the Issuer in complying with any
  provisions hereof either unconditionally or upon any conditions specified in
  such extraordinary resolution; and 

	
 

	
 

	
 

	
(c) power to
  consent to any amendment of the provision of these terms and conditions
  proposed by the Issuer. 

Meaning of “Extraordinary Resolution” 

6.12 The
expression “extraordinary resolution” when used herein means a resolution
proposed at a meeting of Warrant Holders duly convened for that purpose and
held in accordance with the provisions of this Article at which there is a
quorum present and passed by the affirmative votes of Warrant Holders entitled
to purchase not less than 75% of the Shares which can be purchased by the
Warrants represented at the meeting and voted upon such resolution, or a
resolution in writing signed by holders of 75% of the Warrants. No resolution
or extraordinary resolution is required for the Issuer to unilaterally reduce
the exercise price hereof or to extend the Expiry Date. 

Powers Cumulative 

6.13 Any one
or more of the powers and/or any combination of the powers herein stated to be
exercisable by Warrant Holders by extraordinary resolution or otherwise may be
exercised from time to time and the exercise of any one or more of such powers
or any combination of powers from time to time shall not be deemed to exhaust
the right of Warrant Holders to exercise such power or powers or combination of
powers then or any power or powers or combination of powers thereafter from
time to time. 

Minutes 

6.14 Minutes
of all resolutions and proceedings at every meeting of Warrant Holders shall be
made and duly entered in books to be from time to time provided for that
purpose by the Issuer, and any such minutes as aforesaid, if signed by the
Chairman of the meeting at which such resolutions were passed or proceedings
had, or by the Chairman of the next succeeding meeting of Warrant Holders,
shall be prima facie evidence of the matters therein stated and until the
contrary is proved, every such meeting, in respect of the proceedings of which
minutes shall have been made, shall be deemed to have been duly convened and
held, and all resolutions passed thereat or proceedings taken, to have been
duly passed and taken. 

Binding Effect Of Resolutions 

6.15 Every
resolution passed in accordance with the provisions of this Article at a
meeting of Warrant Holders shall be binding upon all Warrant Holders holding
Warrants of the same issue. 

- 13 -

Status Of Warrant Holders 

6.16 The
Holders of Warrants of one issue shall not be entitled as such to attend or
vote at a meeting of the Holders of another issue, and any action taken at a
meeting of the Holders of one issue shall in no way affect the rights of the
Holders of another issue. 

ARTICLE 7 

MODIFICATION OF TERMS, SUCCESSORS

Modification Of Terms And Conditions For
Certain Purposes 

7.1 From time
to time the Issuer may, subject to the provisions of these presents, and shall,
when so directed by these presents, modify the terms and conditions hereof, for
any one or more or all of the following purposes: 

	
 

	
 

	
 

	
(a) giving
  effect to any proper extraordinary resolution duly passed as provided in
  Article 6; 

	
 

	
 

	
 

	
(b) adding
  to or altering the provisions hereof in respect of the registration of
  Warrants making provision for the exchange of Warrants of different
  denominations; 

	
 

	
 

	
 

	
(c) for any
  other purpose not inconsistent with the terms hereof, including the
  correction or rectification of any ambiguities, defective provisions, errors
  or omissions herein; and 

	
 

	
 

	
 

	
(d) to
  evidence any succession of any corporation and the assumption by any
  successor of the covenants of the Issuer herein and in the Warrants contained
  as provided hereafter in this Article. 

Issuer May Amalgamate, Etc. On Certain Terms 

7.2 Nothing
herein contained shall prevent any amalgamation or merger of the Issuer with or
into any other company, or the sale of the property or assets of the Issuer to
any company lawfully entitled to acquire the same; provided however that the
company formed by such merger or amalgamation or which acquires by conveyance
or transfer all or substantially all the properties and assets of the Issuer
shall simultaneously with such amalgamation, merger, conveyance or transfer,
assume the due and punctual performance and observance of all the covenants and
conditions hereof to be performed or observed by the Issuer and shall succeed
to and be substituted for the Issuer, and such changes in phraseology and form
(but not in substance) may be made in the Warrants as may be appropriate in
view of such amalgamation, merger or transfer. Nothing herein will restrict the
Issuer in any way from having the right to create, authorize or issue any
securities in its share or loan capital. 

Creation and Issuance of Additional
Securities Not Restricted 

7.3 Nothing
herein contained shall prevent the Issuer from creating or issuing any other
securities or rights with respect thereto during the period within which a
Warrant is exercisable, upon such terms as the Issuer may deem appropriate. 

APPENDIX A

INSTRUCTIONS TO WARRANT HOLDER

TO EXERCISE:

To exercise
Warrants, the Warrant Holder must complete, sign and deliver the Form of
Subscription, attached as Appendix B and mail or deliver the Warrant
Certificate(s) to Austral Pacific Energy Ltd., c/o its business office, Level
3, 40 Johnston Street, Wellington 6011, New Zealand, Attention: the Secretary,
indicating the number of Shares to be purchased. To the extent this Warrant is
exercised before the Hold Period Expiry set forth in the Warrant Certificate,
all Shares issued hereunder prior to such date will bear the same legends as
are affixed to the face page of the Warrant.

TO TRANSFER:

If the Warrant
Holder wishes to transfer Warrants, then the Warrant Holder must complete, sign
and mail and/or or deliver to Austral Pacific Energy Ltd. care of its business
office set out above:

	
 

	
 

	
(a)

	
the Form of
  Transfer attached as Appendix C;

	
 

	
 

	
(b)

	
the Warrant;
  and

	
 

	
 

	
(c)

	
such other
  certificates or opinions as the Issuer may request in writing, if any, to evidence
  compliance with applicable securities legislation.

If the Warrant
is transferred, the Warrant Holder’s signature on the Form of Transfer must be
guaranteed by an authorized officer of a chartered bank, trust company or an
investment dealer who is a member of a recognized stock exchange.

GENERAL:

For the
protection of the Holder, it would be prudent to use registered mail if
forwarding documents by mail.

If the Form of
Subscription or the Form of Transfer is signed by a trustee, executor,
administrator, curator, guardian, attorney, officer of a corporation or any
person acting in a fiduciary or representative capacity, the Warrant
Certificate must also be accompanied by evidence of authority to sign
satisfactory to Austral Pacific Energy Ltd. 

The address of
the Issuer is as follows:

	
 

	
 

	
 

	
Austral
  Pacific Energy Ltd.

	
 

	
 

	
 

	
Level 3, 40
  Johnston Street

	
 

	
Wellington,
  6011

	
 

	
New Zealand

	
 

	
 

	
 

	
Fax: 64 4
  495 0888

	
 

	
 

	
 

	
Attention:
  The Secretary

APPENDIX B

WARRANT EXERCISE FORM

	
 

	
 

	
To:

	
AUSTRAL PACIFIC ENERGY LTD. (also the “Company”)

	
 

	
Level 3, 40
  Johnston Street

	
 

	
Wellington
  6011

	
 

	
New Zealand

	
 

	
 

	
 

	
Telephone:
  66 4 495 0888     Fax: 64 4 495 0889

1. The
undersigned Holder of the within Warrant Certificate hereby subscribes for
___________ common shares (“Common Shares”) of AUSTRAL PACIFIC ENERGY LTD.
(or such number of Common Shares or other securities or property to which such
subscription entitles him in lieu thereof or in addition thereto under the
provisions of the Warrant Certificate) at the price determined under, and on
the terms specified in, the Warrant Certificate and encloses herewith cash or
pays by bank transfer payable at par to or to the order of AUSTRAL PACIFIC ENERGY LTD. in payment
therefor. New Zealand residents will have their shares issued on the Company’s
New Zealand share register (all others will be issued on the Canadian
register).

2. The
undersigned certifies, represents and warrants that [confirm (a), (b) or (c), as appropriate by initialling the relevant
blank next to the letter]:

	
 

	
 

	
 

	
 

	
—

	
(a)

	
The
  undersigned:

	
 

	
 

	
 

	
 

	
 

	
(i)

	
is not a
  U.S. person or a person within the United States (as such terms are defined
  in Regulation S under the Securities Act of 1933 (the “U.S. Securities Act”);

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
is not
  exercising the Warrants on behalf of a U.S. person or any person within the
  United States;

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
was not in
  the United States at the time any offer to exercise the Warrants was received
  or at the time that the Warrants were exercised; OR

	
 

	
 

	
 

	
 

	
—

	
(b)

	
The
  undersigned:

	
 

	
 

	
 

	
 

	
 

	
(i)

	
purchased the
  units of which the Warrants comprised a part (the “Units”) directly from the
  Company for its own account or the account of another U.S. Accredited
  Investor pursuant to a written subscription agreement for the purchase of the
  Units;

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
is exercising
  the Warrants solely for its own account or the account of such other U.S.
  Accredited Investor;

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
is a U.S.
  Accredited Investor, as defined in Rule 501(a) of Regulation D of the
  Securities Act of 1933, both on the date the Units were purchased from the
  Company and on the date of the exercise of the Warrants; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
if the
  Warrants are being exercised on behalf of another person, represents,
  warrants and certifies such person was a U.S. Accredited Investor, both on
  the

- 2 -

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
date the
  Units were purchased from the Company and on the date of the exercise of the
  Warrants; OR

	
 

	
 

	
 

	
 

	
—

	
(c)

	
The undersigned is tendering with this exercise form a written
  opinion of counsel or other evidence satisfactory to them to the effect that
  the common shares to be delivered upon exercise of this Warrant have been
  registered under the U.S. Securities Act and the Securities laws of all
  applicable States of the United States or are exempt from registration
  thereunder;

The terms
“U.S. Person” and “United States” are as defined in Regulation S under the U.S.
Securities Act.

3. The
undersigned is aware that any shares acquired by exercise of the Warrant before
the Hold Period Expiry will bear the following legend:

	
 

	
 

	
 

	
“Unless
  permitted under applicable Canadian securities legislation, the holder of
  this security must not trade the security before January 21, 2008.”

4. If the
undersigned has indicated that the undersigned is a U.S. Accredited Investor by
marking alternative 2(b) above, the undersigned represents and warrants to the
Company that:

	
 

	
 

	
 

	
(a)

	
It has such
  knowledge and experience in financial and business matters as to be capable
  of evaluating the merits and risks of an investment in the Warrant Shares and
  it is able to bear the economic risk of loss of its entire investment.

	
 

	
 

	
(b)

	
The Company
  has provided to it the opportunity to ask questions and receive answers
  concerning the terms and conditions of the offering and it has had access to
  such information concerning the Company as it has considered necessary or
  appropriate in connection with its investment decision to acquire the Warrant
  Shares.

	
 

	
 

	
(c)

	
It is
  acquiring the Warrant Shares for its own account, for investment purposes
  only and not with a view to any resale, distribution or other disposition of
  the Warrant Shares in violation of the United States securities laws.

	
 

	
 

	
(d)

	
It
  understands the Warrant Shares have not been and will not be registered under
  the United States Securities Act of 1933, as amended (the “U.S. Securities Act”)
  or the securities laws of any state of the United States and that the sale
  contemplated hereby is being made in reliance on an exemption from such
  registration requirements.

	
 

	
 

	
(d)

	
If the
  undersigned is an individual (that is, a natural person and not a
  corporation, partnership, trust or other entity), then it satisfies one or
  more of the categories indicated below (please place an “X” on the
  appropriate lines):

	
 

	
 

	
 

	
 

	
——

	
A natural
  person whose individual net worth, or joint net worth with that person’s
  spouse, at the date of this Certification exceeds US $1,000,000;

	
 

	
 

	
 

	
 

	
——

	
A natural
  person who had an individual income in excess of US $200,000 in each of
  the two most recent years or joint income with that person’s spouse in excess
  of US $300,000 in each of those years and has a reasonable expectation
  of reaching the same income level in the current year;

- 3 -

	
 

	
 

	
 

	
(e)

	
If the
  undersigned is a corporation, partnership, trust or other entity), then it
  satisfies one or more of the categories indicated below (please place an “X”
  on the appropriate lines):

	
 

	
 

	
 

	
——

	
An
  organization described in Section 501(c)(3) of the United States Internal
  Revenue Code, a corporation, a Massachusetts or similar business trust or
  partnership, not formed for the specific purpose of acquiring the Securities,
  with total assets in excess of US $5,000,000;

	
 

	
 

	
 

	
 

	
——

	
A trust that
  (a) has total assets in excess of US $5,000,000, (b) was not formed for
  the specific purpose of acquiring the Warrant Shares and (c) is directed in
  its purchases of securities by a person who has such knowledge and experience
  in financial and business matters that he/she is capable of evaluating the
  merits and risks of an investment in the Warrant Shares;

	
 

	
 

	
 

	
 

	
——

	
An
  investment company registered under the Investment Company Act of 1940 or a
  business development company as defined in Section 2(a)(48) of that Act;

	
 

	
 

	
 

	
 

	
——

	
A Small
  Business Investment Company licensed by the U.S. Small Business
  Administration under Section 301(c) or (d) of the Small Business Investment
  Act of 1958;

	
 

	
 

	
 

	
 

	
——

	
A private
  business development company as defined in Section 202(a)(22) of the
  Investment Advisors Act of 1940; or 

	
 

	
 

	
 

	
 

	
——

	
An entity in
  which all of the equity owners satisfy the requirements of one or more of the
  foregoing categories.

	
 

	
 

	
 

	
(f)

	
It has not
  exercised the Warrants as a result of any form of general solicitation or
  general advertising, including advertisements, articles, notices or other
  communications published in any newspaper, magazine or similar media or broadcast
  over radio, television or other form of telecommunications, or any seminar or
  meeting whose attendees have been invited by general solicitation or general
  advertising.

	
 

	
 

	
(g)

	
If it
  decides to offer, sell or otherwise transfer any of the Warrant Shares, it
  will not offer, sell or otherwise transfer any of such Warrant Shares
  directly or indirectly, unless:

	
 

	
 

	
 

	
 

	
(i)

	
the sale is
  to the Company;

	
 

	
 

	
 

	
 

	
(ii)

	
the sale is
  made outside the United States in a transaction meeting the requirements of
  Rule 904 of Regulation S under the U.S. Securities Act and in compliance with
  applicable local laws and regulations;

	
 

	
 

	
 

	
 

	
(iii)

	
the sale is
  made pursuant to the exemption from the registration requirements under the
  U.S. Securities Act provided by Rule 144 thereunder and in accordance with
  any applicable state securities or “blue sky” laws; or

	
 

	
 

	
 

	
 

	
(iv)

	
the Warrant
  Shares are sold in a transaction that does not require registration under the
  U.S. Securities Act or any applicable state laws and regulations governing
  the offer and sale of securities, and it has prior to such sale furnished to
  the Company an opinion of counsel reasonably satisfactory to the Company.

	
 

	
 

	
 

	
(h)

	
It
  understands that the Warrant Shares are “restricted securities” under
  applicable federal securities laws and that the U.S. Securities Act and the
  rules of the SEC provide in substance that the undersigned may dispose of the
  Warrant Shares only pursuant to an effective registration statement under the
  U.S. Securities Act or an exemption therefrom, and the undersigned 

- 4 -

	
 

	
 

	
 

	
understands
  that the Company has no obligation to register any of the Warrant Shares or
  to take action so as to permit sales pursuant to the U.S. Securities Act
  (including Rule 144 thereunder). 

	
 

	
 

	
(i)

	
The
  certificates representing the Warrant Shares (and any certificates issued in
  exchange or substitution for the Securities) will bear the following legend:

	
 

	
 

	
 

	
“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
  UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”).
  THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF
  THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE
  TRANSFERRED ONLY (A) TO THE COMPANY; (B) OUTSIDE THE UNITED STATES IN ACCORDANCE
  WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT OR (C) IN
  ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT
  PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY
  APPLICABLE STATE SECURITIES LAWS; OR (D) IN A TRANSACTION THAT DOES NOT
  REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE
  SECURITIES LAWS, AND, IN THE CASE OF PARAGRAPH (C) OR (D), THE SELLER
  FURNISHES TO THE COMPANY AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM
  AND SUBSTANCE SATISFACTORY TO THE COMPANY TO SUCH EFFECT. DELIVERY OF THIS
  CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON
  STOCK EXCHANGES IN CANADA. PROVIDED THAT THE COMPANY IS A “FOREIGN ISSUER”, A
  NEW CERTIFICATE BEARING NO LEGEND MAY BE OBTAINED FROM THE TRANSFER AGENT FOR
  THE COMPANY UPON DELIVERY OF THIS CERTIFICATE AND A DULY EXECUTED
  DECLARATION, IN A FORM SATISFACTORY TO THE TRANSFER AGENT AND THE COMPANY, TO
  THE EFFECT THAT SUCH SALE IS BEING MADE IN ACCORDANCE WITH RULE 904 OF
  REGULATION S UNDER THE U.S. SECURITIES ACT.”

	
 

	
 

	
 

	
If the
  Company is a “foreign Company” with no “substantial U.S. market interest”
  (all within the meaning of Regulation S under the U.S. Securities Act) at the
  time of sale, a new certificate will be made available to the undersigned
  upon provision by the undersigned of a declaration in the form attached as
  Appendix “A”.

	
 

	
 

	
(j)

	
It
  understands and agrees that the financial statements of the Company have been
  prepared in accordance with Canadian generally accepted accounting
  principles, which differ in some respects from United States generally
  accepted accounting principles, and thus may not be comparable to financial
  statements of United States companies.

	
 

	
 

	
(k)

	
It consents
  to the Issuer making a notation on its records or giving instructions to any
  transfer agent of the Issuer in order to implement the restrictions on
  transfer set forth and described in this Warrant Exercise Form.

- 5 -

5. The undersigned hereby
irrevocably directs that the said Common Shares be issued and delivered as
follows:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Names(s) in Full 

	
 

	
 

	
Address(es) (Include Postal Code) 

	
 

	
Number(s) of

Common Shares 

	
 

	 
	
 

	
 

	

 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	
 

	 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	
 

	 

	
 

	 

	
(Please print full name in which share certificates are to be issued.
  If any shares are to be issued to a person or persons other than the
  Warrantholder, the Warrantholder must pay to the Trustee all exigible
  transfer taxes or other government charges.)

DATED this _____ day of ____________________,
_____.

(If Common Shares are being registered to
other 

than the registered warrantholder, a signature 

guarantee by a bank or brokerage house is required.

New Zealand residents may have their signatures

guaranteed by a Notary Public.)

	
 

	
 

	
 

	 

	
 

	 

	
Signature
  Guaranteed By:

	
 

	
Signature of
  Subscriber*

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
Name of
  Subscriber

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
Address of
  Subscriber (Include Postal Code)

* This signature must correspond exactly with
the name appearing on the first page.

	
 

	
 

	
Please check box if the share certificates are to be delivered (at
  subscriber’s expense) failing which the certificates will be mailed.

	o

THE RIGHT TO PURCHASE COMMON SHARES UNDER
THIS WARRANT EXPIRES AT 5:00 P.M. (WELLINGTON, NEW ZEALAND TIME) ON THE EXPIRY
DATE OR THE CONTINGENT EXPIRY DATE IF THE CONTINGENT EXPIRY CONDITION HAS
OCCURED.

APPENDIX
A TO WARRANT EXERCISE FORM

[U.S. PERSONS ONLY]

	
 

	
 

	
TO:

	
______________________________
  as registrar and transfer Agent for the common shares of Austral Pacific
  Energy Ltd. (the “Company”).

The undersigned
(A) acknowledges that the sale of the ____________________ represented by
certificate number _______________, to which this declaration relates, is being
made in reliance on Rule 904 of Regulation S under the United States Securities
Act of 1933, as amended (the “U.S. Securities Act”), and (B) certifies that (1)
the undersigned is not an “affiliate” (as defined in Rule 405 under the U.S.
Securities Act) of the Company or a “distributor”, as defined in Regulation S,
or an affiliate of a “distributor”; (2) the offer of such securities was
not made to a person in the United States and either (a) at the time the buy
order was originated, the buyer was outside the United States, or the seller
and any person acting on its behalf reasonably believe that the buyer was
outside the United States, or (b) the transaction was executed on or through
the facilities of a designated offshore securities market within the meaning of
Rule 902(b) under the U.S. Securities Act, and neither the seller nor any
person acting on its behalf knows that the transaction has been prearranged
with a buyer in the United States; (3) neither the seller nor any person acting
on its behalf engaged in any directed selling efforts in connection with the
offer and sale of such securities; (4) the sale is bona fide and not for the
purpose of “washing off” the resale restrictions imposed because the securities
are “restricted securities” (as such term is defined in Rule 144(a)(3) under
the U.S. Securities Act); (5) the seller does not intend to replace the
securities sold in reliance on Rule 904 of the U.S. Securities Act with
fungible unrestricted securities; and (6) the contemplated sale is not a
transaction, or part of a series of transactions which, although in technical
compliance with Regulation S, is part of a plan or a scheme to evade the
registration provisions of the U.S. Securities Act. Terms used herein have the
meanings given to them by Regulation S under the U.S. Securities Act.

	
 

	
 

	
 

	
 

	
 

	
By: 

	
 

	
 

	
Dated: 

	
 

	
 

	 

	
 

	
 

	

	
 

	
Signature

	
 

	
 

	
 

	
 

	
 

	
Name (please
  print)

	
 

	
 

	
 

Affirmation by Seller’s Broker-Dealer

We have read
the foregoing representations of our customer, _________________________ (the
“Seller”) dated _______________________, with regard to the sale, for such
Seller’s account, of the _________________ represented by certificate number
______________ of the Company described therein, and we hereby affirm that, to
the best of our knowledge and belief, the facts set forth therein are full,
true and correct. 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
Name of Firm

	
 

	
 

	
 

	
 

	
By: 

	 

	
 

	
 

	
Authorized
  officer

	
 

	
 

	
 

	
 

	
Date:

	
 

	
 

	
 

	 

	
 

APPENDIX C

FORM OF TRANSFER

	
 

	
 

	
To:

	
AUSTRAL PACIFIC ENERGY LTD. (also the “Company”)

	
 

	
 

	
 

	
Level 3, 40
  Johnston Street

	
 

	
Wellington
  6011

	
 

	
New Zealand

	
 

	
 

	
 

	
Telephone:
  66 44 76 2717     Fax: 64 44 76 0120

	
 

	
 

	
 

	
Attention:
  The Secretary

          FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
___________________[name] (the “Transferee”), of __________________
[residential address], ______________________ [number of warrants] Warrants of
AUSTRAL PACIFIC ENERGY LTD. (the “Issuer”) registered in the name of the
undersigned on the records of the Issuer by the within certificate, and
irrevocably appoints the Issuer as the attorney of the undersigned to transfer
the said securities on the books or register of transfer, with full power of
substitution. 

          DATED
this ______ day of _______________, 200__.

	
 

	
 

	
 

	 

	
 

	 

	
Signature
  Guaranteed 

  (See instructions to Warrant Holders on Appendix A)

	
 

	
Signature of
  Warrant Holder (to be the same as appears on the face of this Warrant
  Certificate)

Note to Warrant Holder: In order to transfer the Warrants, this form of
transfer must be delivered to the Issuer, together with the Warrant Certificate
attached hereto and any other documentation as the Issuer may require to
evidence compliance with applicable securities legislation in Canada and the
United States.EXHIBIT 4.10

COMMON SHARE (WITH WARRANT) SUBSCRIPTION
AGREEMENT

	
 

	
 

	
TO:

	
Austral Pacific Energy Ltd. (herein “Austral” or “Issuer”) 

	
 

	
Level 3, 40 Johnson Street

	
 

	
Wellington Central

	
 

	
Wellington 6011

	
 

	
New Zealand

	
 

	
Phone: 64 4 495 0888 Fax: 64 4 495 0889

	
 

	
 

	
FROM:

	
______________________________

	
 

	
(Investor Name)

	
 

	
 

	
RE:

	
Purchase of Austral Common (Ordinary) Shares plus warrants at US$1.20

	
 

	
Reference Date: December 3, 2007

	
 

	
Cut-off Time for Documents and Wiring Funds: 5 p.m., Dec. 12th, 2007
 (NZ time)

	
 

	
 

	 

	
 

	
INSTRUCTIONS FOR COMPLETING THIS SUBSCRIPTION 

	
 

	 

	
 

	
 

	
 

	
1.

	
Complete the
 information required on page 2 with respect to subscription amounts and
 registration and delivery particulars for the Share certificates.

	
 

	
 

	
 

	
2.

	
Complete the
 applicable forms (the “Forms”) at the end of this Subscription: 

	
 

	
 

	
 

	
 

	
(a)

	
If the investor is not an individual (i.e.
 not a natural person) or it is a Portfolio Manager – Complete TSX Venture
 Exchange Registration Form 4C. (If you have previously filed this form
 in connection with another transaction or issuer on the TSX Venture Exchange
 and your information has not changed you need NOT complete another one.) (See
 Schedule A).

	
 

	
 

	
 

	
 

	
(b)

	
Subscribers resident in Canada, sign
 Schedule B – Representation Letter For Accredited Investors;

	
 

	
 

	
 

	
 

	
(c)

	
Subscribers who are US Persons or who were
 offered the Shares in the United States, who execute or deliver this
 Agreement in the United States, or who are “U.S. Persons” (as hereinafter
 defined) must be “accredited investors” within the meaning assigned in Rule
 501(a) of Regulation D promulgated under the U.S. Securities Act, and must
 complete and sign Schedule C – Certificate of U.S. Purchaser.

	
 

	
 

	
 

	
3.

	
All investors fax or courier completed form
 to the above address and wire subscription funds to the Issuer, as per below
 Attention: Derek Gardiner, CFO. All monetary amounts herein are in U.S.
 dollars payable by telegraphic transfer should be payable to: “Austral
 Pacific Energy Ltd.”

Signed and completed documents must be
received by fax no later than Wednesday, December 12, 2007 at 5:00 p.m. NZ
time. Funds must arrive concurrently. Completion will occur approximately 15
days thereafter upon American Stock Exchange (AMEX) and TSX Venture Exchange
acceptance. 

Wiring Instructions:

	
 

	
 

	
 

	
 

	
Bank:

	
Bank of New
 York

	
Account Name:

	
ASB Bank
 Limited

	
 

	
1 Wall
 Street, Floor 9

	
Chips Code:

	
UID271760

	
 

	
New York NY
 10286

	
Swift:

	
IRVTUS3N

	
 

	
United
 States of America

	
Account Number:

	
8900280107

	
 

	
 

	
 

	
 

	
Please
 confirm payment details to the ASB Bank by authenticated swift message (Type
 103) as follows:

	
 

	
 

	
 

	
 

	
For further credit to:

	
Austral
 Pacific Energy (NZ) Limited

	
Under advice to:

	
ASB
 Financial Markets

	
 

	
 

	
Corner
 Wellesley & Albert Streets,

	
 

	
 

	
Auckland

	
 

	
 

	
New Zealand

	
 

	
 

	
Swift:
 ASBBNZ2A

- 2 -

	
 

	
 

	
 

	 

	
(Name of Investor – please print)

	
 

	 

	
(Signature of Investor)

	
 

	 

	
(Official Capacity or Title of Signatory, if Investor is not an
 individual – please print)

	
 

	 

	
(Please print name of individual whose
 signature appears above if different than the name of the name of the
 Investor printed above.)

	
 

	 

	
(Investor’s Address)

	
 

	
 

	 

	
 

	
 

	
 

	 

	
Investor’s Telephone Number and Fax Number)

	
 

	 

	
Investor’s E-Mail Address (optional)

	

	
 

	
REGISTER the Shares as set forth below

	
 

	 

	
Name

	
 

	 

	
Account reference, if applicable

	
 

	 

	
Address

	
 

	 

	
 

	
Account
 Number: 21099188-USD-21

	
 

	
Number of Shares: _____________________________

	
 

	
 

	
One warrant will be issued at no further Cost for each Share
 purchased

	
 

	
Note Austral reserves the right to reject or accept any subscription
 in whole or in part.

	
 

	
 

	
 

	
 

	
 

	
Aggregate Subscription Price:

	
 

	
 

	
$ _____________________________________________

	
Payable to: Austral Pacific Energy Ltd.

	
 

	
 

	
 

	
 

	
 

	
DELIVER the Shares and Warrants as set
 forth below:

	
 

	 

	
Name 

	
 

	 

	
Account reference, if applicable

	
 

	 

	
Contact Name

	
 

	 

	
Address

	
 

	 

	
 

	
 

	 

	
Telephone Number

Consent to the Disclosure of Information
under Privacy Legislation

The Investor
acknowledges that certain “Personal Information” (information about an
identifiable individual) about the Investor may be required to be disclosed by
the Issuer to the TSX Venture Exchange (the “Exchange”) pursuant to Exchange
policies and the Investor consents to the disclosure of such Personal
Information by the Issuer to the Exchange, and to the collection, use and
disclosure of such Personal Information by the Exchange in accordance with its
specified purposes.

- 3 -

OTHER
INFORMATION TO BE COMPLETED BY EACH INVESTOR

	
 

	
 

	
 

	
A.

	
Corporate Placee or Investment Portfolio
 Manager Registration Form (Schedule A)

	
 

	
 

	
 

	
 

	
IF THE INVESTOR IS NOT AN INDIVIDUAL (i.e.,
 a natural person), either [CHECK WHERE APPROPRIATE]:

	
 

	
 

	
 

	
_____

	
has previously filed with the Exchange a Form 4C, Corporate Placee
 Registration Form, and represents and warrants that there has been no change
 to any of the information in the Corporate Placee Registration Form
 previously filed with the TSX Venture Exchange Inc. (the “TSX Venture”) up to
 the date of this Agreement; or

	
 

	
 

	
 

	
_____

	
hereby delivers to the Issuer a completed Form 4C, Corporate Placee
 Registration Form, in the form attached hereto as for filing with the TSX
 Venture; and

	
 

	
 

	
 

	
B.

	
Present Ownership of Securities

	
 

	
 

	
 

	
 

	
The Investor either [CHECK APPROPRIATE
 ITEM]:

	
 

	
 

	
 

	
_____

	
does not own directly or indirectly, or exercise control or direction
 over, any common shares in the capital stock of the Issuer or securities
 convertible into common shares in the capital stock of the Issuer (excluding
 the Shares subscribed for herein); or

	
 

	
 

	
 

	
_____

	
owns directly or indirectly, or exercise control or direction over, ____________________
 common shares in the capital stock of the Issuer and options, warrants and
 convertible securities entitling the Investor to acquire an additional ____________________
 common shares in the capital stock of the Issuer (excluding the Shares ____________________
 subscribed for herein).

	
 

	
 

	
 

	
C.

	
Insider Status

	
 

	
 

	
 

	
 

	
The Investor either [CHECK IF
 APPROPRIATE]:

	
 

	
 

	
 

	
_____

	
is NOT an “Insider” of
 the Issuer as defined in the British Columbia Securities Act;

	
 

	
 

	
 

	
_____

	
is an “Insider” of the Issuer as defined in the British Columbia
 Securities Act, namely: “Insider” means:

	
 

	
 

	
 

	
 

	
(a) a director or senior officer of the issuer;

	
 

	
 

	
 

	
 

	
(b) a director or senior officer of a person that is itself an insider or
 subsidiary of the issuer;

	
 

	
 

	
 

	
 

	
(c) a person that has

	
 

	
 

	
 

	
 

	
 

	
(i)          direct
 or indirect beneficial ownership of;

	
 

	
 

	
 

	
 

	
 

	
(ii)         control or
 direction over; or

	
 

	
 

	
 

	
 

	
 

	
(iii)        a combination of
 direct or indirect beneficial ownership of and of control or direction over
 securities of the issuer carrying more than 10% of the voting rights attached
 to all the issuer’s outstanding voting securities, excluding, for the purpose
 of the calculation of the percentage held, any securities held by the person
 as underwriter in the course of a distribution, or

	
 

	
 

	
 

	
 

	
(d) the issuer itself, if it has
 purchased, redeemed or otherwise acquired any securities of its own issue,
 for so long as it continues to hold those securities.

	
 

	
 

	
 

	
D.

	
Member of “Pro Group”

	
 

	
 

	
 

	
 

	
The Investor either [CHECK IF
 APPROPRIATE]:

	
 

	
 

	
 

	
_____

	
is NOT a Member of the
 “Pro Group” as defined in the Rules of the TSX Venture

	
 

	
 

	
 

	
_____

	
is a Member of the “Pro Group” as defined in the Rules of the TSX
 Venture, namely: “Pro Group” means:

	
 

	
 

	
 

	
 

	
1. Subject to subparagraphs (2), (3) and (4), “Pro Group” shall
 include, either individually or as a group:

	
 

	
 

	
 

	
 

	
 

	
(a)     the member (i.e. a member of the TSX Venture under its requirements);

	
 

	
 

	
 

	
 

	
  

	
(b)     employees of the member;

	
 

	
 

	
 

	
 

	
  

	
(c)     partners, officers and directors of the member;

	
 

	
 

	
 

	
 

	
  

	
(d)     affiliates of the member; and

	
 

	
 

	
 

	
 

	
  

	
(e)     associates of any parties referred to in subparagraphs (1) through
 (4).

- 4 -

2. The TSX Venture may, in its discretion,
include a person or party in the Pro Group for the purposes of a particular
calculation where the TSX Venture determines that the person is not acting at
arm’s length of the member;

3. The TSX Venture may, in its discretion,
exclude a person from the Pro Group for the purposes of a particular
calculation where the TSX Venture determines that the person is acting at arm’s
length of the member;

4. The member may deem a person who would
otherwise be included in the Pro Group pursuant to subparagraph (1) to be
excluded from the Pro Group where the member determines that:

	
 

	
 

	
 

	
 

	
(a)

	
the person is an affiliate or associate of the member acting at arm’s
 length of the member;

	
 

	
 

	
 

	
 

	
(b)

	
the associate or affiliate has a separate corporate and reporting
 structure;

	
 

	
 

	
 

	
 

	
(c)

	
there are sufficient controls on information flowing between the
 member and the associate or affiliate; and

	
 

	
 

	
 

	
 

	
(d)

	
the member maintains a list of such excluded persons.

	
 

	
 

	
 

	
 

	 

ACCEPTANCE: The Issuer hereby accepts the above
subscription.

AUSTRAL PACIFIC ENERGY LTD.

	
 

	
 

	
 

	
 

	
Per:

	
___________________________________

	
Acceptance
 Date: 

	
___________________________________

	
 

	
Authorized
 Signatory

	
 

	
 

- 5 -

Purchase of US$1.20 Shares (and warrants)
Exempt from Prospectus Requirements

1. Definitions

	
 

	
 

	
1.1

	
(a) “Accredited Investor” means, for a
Subscriber resident in Canada or the United Sates a high net worth or high
income person, specifically defined on the relevant attachments hereto as an
Investor;  

	
 

	
 

	
 

	
(b) “AMEX” means American Stock Exchange, the
 U.S. stock exchange on which Austral’s shares are traded.

	
 

	
 

	
 

	
(c) “Applicable Securities Laws” means the
 securities legislation having application and the rules, policies, notices
 and orders issued by applicable securities regulatory authorities, including
 AMEX, NZSX and the TSX Venture, having application over this Offering and the
 Issuer in the Principal Canadian Jurisdictions;

	
 

	
 

	
 

	
(d) “Closing” means a completion of an issue
 and sale by the Issuer and the purchase by the Investors of the Securities
 pursuant to this Subscription Agreement at 10:00 a.m. on the Closing Date.
 Closings may occur on one or more dates as the Issuer may determine within
 the requirements of Regulatory Acceptance;

	
 

	
 

	
 

	
(e) “Closing Date” means the day following
 Regulatory Acceptance of this subscription and others which form part of the
 Offering and which is expected to occur on or about December 27, 2007 as the
 Issuer may determine within the requirements of the TSX Venture, AMEX and
 NZSX, if applicable. On the Closing Date the Shares will be issued and
 delivered to Investor or as it may direct;

	
 

	
 

	
 

	
(f) “Cut-off
 Time” means the date after which the Issuer need no longer accept Subscriptions.
 The Cut-off Time is 5:00 p.m., December 12th, 2007 (New Zealand time).

	
 

	
 

	
 

	
(g) “Exemptions” means the exemptions from the
 registration and prospectus or equivalent requirements under Applicable
 Securities Laws;

	
 

	
 

	
 

	
(h) “Foreign Portfolio Manager” means a person
 who carries on business as a “portfolio manager” (within the meaning of that
 term under Applicable Securities Laws) in an Overseas Jurisdiction and who
 purchases Shares as an agent for fully managed accounts;

	
 

	
 

	
 

	
(i) “fully managed” in relation to an account,
 means that the Investor has the discretion as to the account as contemplated
 by Applicable Securities Law;

	
 

	
 

	
 

	
(j) “Investor” means the
 person or persons named as Investor on the face page of this Subscription
 Agreement and if more than one person is so named, means all of them jointly
 and severally;

	
 

	
 

	
 

	
(k) “material” means
 material in relation to the Issuer and any subsidiary considered on a
 consolidated basis;

	
 

	
 

	
 

	
(l) “material change”
 means any change in the business, operations, assets, liabilities, ownership
 or capital of the Issuer and any subsidiary considered on a consolidated
 basis that would reasonably be expected to have a significant effect on the
 market price or value of the Issuer’s securities;

	
 

	
 

	
 

	
(m) “material fact”
 means any fact that significantly affects or would reasonably be expected to
 have a significant effect on the market price or value of the Issuer’s
 securities;

	
 

	
 

	
 

	
(n) “misrepresentation”
 is as generally defined under Applicable Securities Laws;

	
 

	
 

	
 

	
(o) “NZSX” means the New
 Zealand Stock Exchange;

- 6 -

	
 

	
 

	
 

	
(p) “Offering” means the planned sale by the
 Issuer of up to US$17,000,000 of Shares and Warrants on the terms set forth
 in this Agreement. There is no minimum aggregate Offering;

	
 

	
 

	
 

	
(q) “Overseas
 Jurisdiction” means a country other than Canada or the United
 States;

	
 

	
 

	
 

	
(r) “Portfolio Manager” means an adviser who
 manages the investment portfolio of clients through discretionary authority
 granted by one or more clients;

	
 

	
 

	
 

	
(s) “Public Record” means information which
has been publicly filed by the Issuer on SEDAR at www.SEDAR.com and on EDGAR
at www.SEC.gov/edgar.shtml under Applicable Securities Laws;  

	
 

	
 

	
 

	
(t) “Principal Canadian Jurisdictions” means British Columbia, Alberta
 and Ontario and certain other jurisdictions referred to in Multilateral
 Instrument 45-102;

	
 

	
 

	
 

	
(u) “Regulation D” means Regulation D under
 the U.S. Securities Act;

	
 

	
 

	
 

	
(v) “Regulation S” means Regulation S under
 the U.S. Securities Act;

	
 

	
 

	
 

	
(w) “Regulatory Acceptance” means the
 acceptance of the transaction contemplated hereby and the approval for
 listing of the Shares by the TSX Venture, AMEX and NZSX;

	
 

	
 

	
 

	
(x) “Securities” means the Shares, Warrants
 and Warrant Shares;

	
 

	
 

	
 

	
(y) “Share” means a common share without par value
 in the capital of the Issuer;

	
 

	
 

	
 

	
(z) “Subscription Agreement” means this
 subscription agreement between the Investor and the Issuer, including all
 Schedules incorporated by reference as it may be amended or supplemented from
 time to time;

	
 

	
 

	
 

	
(aa) “TSX Venture” means the TSX Venture
 Exchange, the Canadian stock exchange on which Austral’s shares are traded;

	
 

	
 

	
 

	
(bb) “U.S. Person” means a U.S. Person as
 defined in Regulation S; and

	
 

	
 

	
 

	
(cc) “U.S. Securities Act” means the Securities
 Act of 1933, as amended, of the United States of America.

	
 

	
 

	
 

	
(a) “Warrants”
 means Share purchase
 warrants; exercisable to acquire an additional common share of the Issuer for
 a 12 month period after the Closing Date on the terms described herein. One
 warrant is included, for no additional consideration, with the purchase of
 each Share. The Warrants are transferable (subject to applicable securities
 laws) but will not be listed on any exchange.;

	
 

	
 

	
 

	
(b) “Warrant
 Certificate” means the certificate representing the Warrant issued
 to an Investor as part of an Unit; and

	
 

	
 

	
 

	
(c) “Warrant Shares” means be used to refer to
 the Shares to be issued upon the exercise of the Warrants

2. Prospectus Exempt Subscription Commitment

2.1 The
undersigned (the “Investor”) hereby subscribes for and agrees to purchase from
Austral Pacific Energy Ltd. (herein the “Issuer”), subject to the terms and
conditions set forth herein, that number of Shares and Warrants of the Issuer
set out on the face page of this Subscription Agreement at the price of US$1.20
per Share plus one Warrant together. Subject to the terms hereof, this
Subscription will be deemed to have been made and be effective only upon its
acceptance by the Issuer.

- 7 -

2.2 The
Warrants will be governed by the terms and conditions set out in the
certificate representing the Warrants (the “Warrant Certificates”) which will
be delivered to the Investor at Closing. Each Warrant Certificate will contain,
among other things, provision for the appropriate adjustment in a class, number
and price of the Warrant Shares upon the occurrence of certain events,
including any subdivision, consolidation or re-classification of the common
shares of the Issuer or payments of stock dividends or upon the merger or
re-organization of the Issuer.

2.3 The
Warrants are exercisable at US$2.25 per Share for 12 months from Closing.

3. Closing

3.1 The
Investor must deliver to the offices of the Issuer on or before the Cut-off
Time, this subscription agreement duly completed and executed in accordance
with the instructions on the face page of this Agreement and arrange for
concurrent wiring of funds. On request by the Issuer, the Investor agrees to
complete and deliver any other information as may reasonably be required by
regulatory authorities, stock exchanges and Applicable Securities Laws to
complete the transactions contemplated by this Agreement. Delivery against
payment for the Shares and Warrants will be completed by the Issuer at its
offices on the Closing Date being a date following Regulatory Acceptance at
which time certificates representing the Shares will be delivered to the
Investor as the Investor shall instruct. Investor hereby waives receiving any
prior notice of Closing. Closing is targeted for on or about December 24, 2007.

3.2 Once this
agreement is accepted by the Issuer, the completion of the sale of securities
contemplated by this subscription is subject only to Regulatory Acceptance
being obtained.

3.3 The
Investor agrees that the funds advanced hereunder maybe immediately used by the
Issuer and will be treated as a short term loan to it until Closing.

4. Investor’s Acknowledgements – Regarding
Risk, Restrictions, Independent Advice

4.1 The
Investor represents and warrants and acknowledges and agrees with (on its own
behalf and, if applicable, on behalf of each beneficial purchaser for whom the
Investor is contracting hereunder) the Issuer that

	
 

	
 

	
 

	
 

	
(a) its
 decision to execute this Subscription and purchase the Securities agreed to
 be purchased hereunder has not been based upon any oral or written
 representation as to fact or otherwise made by or on behalf of the Issuer,
 and that its decision is based entirely upon its review of information about
 the Issuer in the Public Record;

	
 

	
 

	
 

	
 

	
(b) no
 prospectus has been filed by the Issuer with any securities commission or
 similar authority in Canada or elsewhere, in connection with the issuance of
 the Securities, and the issuance and the sale of the Shares is subject to
 such sale being exempt from the prospectus/registration requirements under Applicable
 Securities Laws and accordingly:

	
 

	
 

	
 

	
 

	
 

	
(i) the
 Investor is restricted from using certain of the civil remedies available
 under such legislation;

	
 

	
 

	
 

	
 

	
 

	
(ii) the
 Investor may not receive information that might otherwise be required to be
 provided to it under such legislation; and

	
 

	
 

	
 

	
 

	
 

	
(iii) the
 Issuer is relieved from certain obligations that would otherwise apply under
 such legislation;

	
 

	
 

	
 

	
 

	
(c) the
 Investor (or others for whom the Investor is contracting hereunder) has been
 advised to consult its own legal advisors with respect to the merits and
 risks of an investment in the Securities and with respect to applicable
 resale restrictions and it (or others for whom it is contracting hereunder)
 is solely responsible (and the Issuer is in no way responsible) for
 compliance with applicable resale restrictions;

- 8 -

	
 

	
 

	
 

	
 

	
(d) to the
 knowledge of the Investor, the sale of the Securities was not accompanied by
 any public advertisement;

	
 

	
 

	
 

	
 

	
(e) the
 offer made by this agreement is irrevocable (subject to the right of the
 Issuer to reject any Subscription prior to Closing by refunding any
 subscription funds) and requires acceptance by the Issuer;

	
 

	
 

	
 

	
 

	
(f) this
 Subscription is not enforceable by the Investor unless it has been accepted
 by the Issuer and the Investor waives any requirement on the Issuer’s behalf
 to immediately communicate its acceptance for this Subscription to the
 Investor;

	
 

	
 

	
 

	
 

	
(g) the
 Securities are speculative investments which involve a substantial degree of
 risk;

	
 

	
 

	
 

	
 

	
(h) the
 Investor is sophisticated in financial investments, has had access to and has
 received all such information concerning the Issuer that the Investor has
 considered necessary in connection with the Investor’s investment decision
 and the Investor will not receive an offering memorandum or similar
 disclosure document;

	
 

	
 

	
 

	
 

	
(i) the
 subscription proceeds will be available to the Issuer on Closing and this
 subscription is not conditional on any other subscription completing. The
 Issuer may pay commissions in connection with this Subscription in its
 discretion

	
 

	
 

	
 

	
 

	
(j) no
 agency, governmental authority, regulatory body, stock exchange or other
 entity has made any finding or determination as to the merit for investment
 of, nor have any such agencies or governmental authorities made any
 recommendation or endorsement with respect to, the Securities; and

	
 

	
 

	
 

	
 

	
(k) the
 Issuer will rely on the representations and warranties made herein or
 otherwise provided by the Investor to the Issuer in completing the sale and
 issue of the Shares to the Investor.

4.2 The
Investor hereby agrees that with respect to any personal information provided
in this document or otherwise received by or in possession of the Issuer
(“Personal Information”), the Investor hereby consents to 

	
 

	
 

	
 

	
(a) the disclosure
 of any Personal Information to the TSX Venture, AMEX and NZSX and such
 securities commissions as may have jurisdiction over the Issuer; and

	
 

	
 

	
 

	
(b) the
 further collection, use and disclosure of any Personal Information by the
 aforesaid regulator authorities for the discharge of their regulatory
 functions.

5. Investor’s Exemption Status

5.1 The
Investor, by its execution of this Subscription Agreement, hereby further
represents, warrants to, and covenants with, the Issuer (which representations,
warranties and covenants shall survive the Closing of the Offering) that the
Investor is purchasing the Shares as principal for its own account, it is
purchasing such Shares not for the benefit of any other person, and not with a
view to the resale or distribution of the Shares and one of the following
Exemptions applies to the Investor: 

	
 

	
 

	
 

	
 

	
(a) Insiders’ Family, Close Friends and Business
Associates Exemption (Investors
Outside of Canada go to §5.2
and note §5.3(m)) 

	
 

	
 

	
 

	
 

	
 

	
The Investor
 is:

	
 

	
 

	
 

	
 

	
 

	
(i) a director,
 executive officer or control person of the Issuer, or of an affiliate of the
 Issuer,

	
 

	
 

	
 

	
 

	
 

	
(ii) a
 spouse, parent, grandparent, brother, sister or child of a director,
 executive officer or control person of the Issuer, or of an affiliate of the
 Issuer,

- 9 -

	
 

	
 

	
 

	
 

	
 

	
(iii) a
 parent, grandparent, brother, sister or child of the spouse of a director,
 executive officer or control person of the Issuer or of an affiliate of the
 Issuer,

	
 

	
 

	
 

	
 

	
 

	
(iv) a close
 personal friend of a director, executive officer or control person of the
 Issuer, or of an affiliate of the Issuer, 

	
 

	
 

	
 

	
 

	
 

	
(v) a close
 business associate of a director, executive officer or control person of the
 Issuer, or of an affiliate of the Issuer,

	
 

	
 

	
 

	
 

	
 

	
(vi) a
 founder of the Issuer or a spouse, parent, grandparent, brother, sister,
 child, close personal friend or close business associate of a founder of the
 Issuer,

	
 

	
 

	
 

	
 

	
 

	
(vii) a
 parent, grandparent, brother, sister or child of a spouse of a founder of the
 Issuer,

	
 

	
 

	
 

	
 

	
 

	
(viii) a
 person of which a majority of the voting securities are beneficially owned
 by, or a majority of the directors are, persons described in paragraphs (i)
 to (vii), or

	
 

	
 

	
 

	
 

	
 

	
(ix) a trust or estate of which all of the
 beneficiaries or a majority of the trustees or executors are persons
 described in paragraphs (i) to (vii);

	
 

	
 

	
 

	
 

	
(b)

	
Minimum Amount Exemption

	
 

	
 

	
 

	
 

	
 

	
(i) The
 aggregate acquisition cost of purchasing the Shares will not be less than
 Cdn.$150,000 paid in cash at the time of purchase, and the Investor has not
 been created or used solely to purchase or hold the Shares in reliance on
 this Exemption;

	
 

	
 

	
 

	
 

	
(c)

	
Accredited Investor Exemption

	
 

	
 

	
 

	
 

	
 

	
The Investor
 is an “Accredited Investor” and the Investor has properly completed and duly
 executed the Representation Letter for Accredited Investors attached to this
 Subscription Agreement as Schedule B indicating the means by which the
 Investor is an Accredited Investor and confirms the truth and accuracy of all
 statements made by the Investor in such certificate; or

	
 

	
 

	
 

	
 

	
(d)

	
For
 residents of Ontario only, the Investor is:

	
 

	
 

	
 

	
 

	
 

	
(i) a
 founder of the Issuer,

	
 

	
 

	
 

	
 

	
 

	
(ii) an
 affiliate of a founder of the Issuer,

	
 

	
 

	
 

	
 

	
 

	
(iii) a
 spouse, parent, brother, sister, grandparent or child of an executive
 officer, director or founder of the Issuer, or

	
 

	
 

	
 

	
 

	
 

	
(iv) a
 person that is a control person of the Issuer.

5.2 All Investors Outside of Canada (US
Investors see also 5.3)

If the
Investor is resident in a jurisdiction outside of Canada it acknowledges and
certifies that:

	
 

	
 

	
 

	
(a) no securities
 commission or similar regulatory authority has reviewed or passed on the
 merits of the Shares;

	
 

	
 

	
 

	
(b) there is
 no government or other insurance covering the Shares;

	
 

	
 

	
 

	
(c) there
 are risks associated with the purchase of the Shares;

- 10 -

	
 

	
 

	
 

	
(d) there
 are restrictions on the Investor’s ability to resell the Shares and it is the
 responsibility of the Investor to determine what those restrictions are and
 to comply with them before selling the Shares; and

	
 

	
 

	
 

	
(e) the Issuer
 has advised the Investor that the Issuer is relying on an exemption from the
 requirements to provide the Investor with a prospectus and to sell the Shares
 through a person registered to sell the Shares under Applicable Securities
 Laws and, as a consequence of acquiring securities pursuant to this
 exemption, certain protections, rights and remedies provided by Applicable
 Securities Laws, including statutory rights of rescission or damages, will
 not be available to the Investor;

	
 

	
 

	
 

	
(f) the
 Investor is knowledgeable of securities legislation having application or
 jurisdiction over the Investor and the Offering (other than the laws of
 Canada and the United States) which would apply to this subscription;

	
 

	
 

	
 

	
(g) the
 Investor is purchasing the Shares pursuant to exemptions from any prospectus,
 registration or similar requirements under the laws of that International
 Jurisdiction and or, if such is not applicable, the Investor is permitted to
 purchase the Investor’s Shares, and the Issuer has no filing obligations in
 the International Jurisdiction;

	
 

	
 

	
 

	
(h) no laws
 in the International Jurisdiction require the Issuer to make any filings or
 seek any approvals of any kind whatsoever from any regulatory authority of
 any kind whatsoever in the International Jurisdiction;

	
 

	
 

	
 

	
(i) the
 Shares are being acquired for investment only and not with a view to resale
 and distribution within the International Jurisdiction; and

	
 

	
 

	
 

	
(j) if it is
 a resident of the United Kingdom then it complies with the provisions of §5.1
 of this Subscription Agreement as if it were a resident of British Columbia
 and it is a person of the described in Article 11(3) of the Financial
 Services Act, 1986 (Investment Advertisements)
 (Exemptions) Order 1996, as amended, and is a person whose ordinary
 activities involve it in acquiring, holding, managing or disposing of
 investments (as principal or agent) for the purpose of its business.

5.3 Other General Representations Applicable
to Investors

The following
representations are hereby made by each Investor subject to the provisos
contained below:

	
 

	
 

	
 

	
 

	
(a) the
 Investor has no knowledge of a “material fact” or “material change”, as those
 terms are defined in Applicable Securities Laws, in respect of the affairs of
 the Issuer that has not been generally disclosed to the public;

	
 

	
 

	
 

	
 

	
(b) the
 Investor (and, if applicable, any beneficial purchaser for whom it is acting)
 is resident in the jurisdiction set out under the heading “Name and Address
 of Investor” on the execution page of this Subscription Agreement;

	
 

	
 

	
 

	
 

	
(c) the
 Investor has the legal capacity and competence to enter into and execute this
 Subscription and to take all actions required pursuant hereto and, if the
 Investor is a corporation, it is duly incorporated and validly subsisting
 under the laws of its jurisdiction of incorporation and all necessary
 approvals by its directors, shareholders and others have been obtained to
 authorize execution of this Subscription Agreement on behalf of the Investor;

	
 

	
 

	
 

	
 

	
(d) the
 entering into of this Subscription Agreement and the transactions
 contemplated hereby do not result in the violation of any of the terms and
 provisions of any law applicable to, or the constating documents of, the
 Investor or of any agreement, written or oral, to which the Investor may be a
 party or by which the Investor is or may be bound;

- 11 -

	
 

	
 

	
 

	
 

	
(e) the
 Investor has duly and validly authorized, executed and delivered this
 Subscription Agreement and understands it is intended to constitute a valid
 and binding agreement of the Investor enforceable against the Investor;

	
 

	
 

	
 

	
 

	
(f) in
 connection with the Investor’s investment in the Shares, the Investor has not
 relied upon the Issuer for investment, legal or tax advice, and has, in all
 cases sought the advice of the Investor’s own personal investment advisor,
 legal counsel and tax advisers or has waived its rights thereto and the
 Investor is either experienced in or knowledgeable with regard to the affairs
 of the Issuer, or either alone or with its professional advisors is capable,
 by reason of knowledge and experience in financial and business matters in
 general, and investments in particular, of evaluating the merits and risks of
 an investment in the Shares and is able to bear the economic risk of the
 investment and it can otherwise be reasonably assumed to have the capacity to
 protect its own interest in connection with the investment in the Shares;

	
 

	
 

	
 

	
 

	
(g) no
 person has made to the Investor any written or oral representations:

	
 

	
 

	
 

	
 

	
 

	
(i) that any
 person will resell or repurchase the Shares;

	
 

	
 

	
 

	
 

	
 

	
(ii) that any
 person will refund the purchase price for the Shares; 

	
 

	
 

	
 

	
 

	
 

	
(iii) as to
 the future price or value of the Shares; or

	
 

	
 

	
 

	
 

	
 

	
(iv) that
 the Shares will be listed and posted for trading on any stock exchange or
 that application has been made to list the Shares of the Issuer on any stock
 exchange;

No U.S. Investor Participation Except with
Accredited Investor Form (Schedule C)

	
 

	
 

	
 

	
 

	
 

	
(h) If the
 Investor IS NOT a US Person then the Investor represents and warrants that:

	
 

	
 

	
 

	
 

	
 

	
(i) the
 Investor

	
 

	
 

	
 

	
 

	
 

	
 

	
(A) is not,
 and is not purchasing the Shares for the account of or benefit of, a U.S.
 Person or a person in the United States;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B) was not
 offered Shares in the United States; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C) did not
 execute or deliver this Agreement in the United States; OR

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii) if the
 Investor IS a US Person the Investor is a U.S. Person who is an “accredited
 investor” as defined in Rule 501(a) of Regulation D of the U.S. Securities
 Act; and

	
 

	
 

	
 

	
 

	
 

	
(iii) in the
 case of paragraph 5.3(h)(ii) above, the Investor has duly completed, executed
 and delivered to the Issuer the Certificate of U.S. Purchaser attached hereto
 as Schedule C, and represents, warrants and covenants to the Issuer as to the
 accuracy of all matters set out therein as at the date hereof and on the
 Closing Date;

	
 

	
 

	
 

	
 

	
(i) If the
 Investor IS a US Person, then the Investor additionally represents and
 further warrants that:

	
 

	
 

	
 

	
 

	
 

	
(i) the
 Investor does not have any agreement or understanding (either written or
 oral) with any U.S. Person or a person in the United States respecting:

	
 

	
 

	
 

	
 

	
 

	
 

	
(A) the
 transfer or assignment of any rights or interests in any of the Shares;

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B) the
 division of profits, losses, fees, commissions, or any financial stake in
 connection with this Subscription; or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C) the
 voting of the Shares; and

- 12 -

	
 

	
 

	
 

	
 

	
 

	
(ii) the
 Investor has no intention to distribute either directly or indirectly any of
 the Shares in the United States or to U.S. Persons except in accordance with
 Rule 144; and

	
 

	
 

	
 

	
 

	
 

	
(iii) the
 Investor represents that the current structure of this transaction and all
 transactions and activities contemplated hereunder is not a scheme to avoid
 the registration requirements of the U.S. Securities Act;

	
 

	
 

	
 

	
 

	
(j) The Investor acknowledges and agrees that:

	
 

	
 

	
 

	
 

	
 

	
(i) the Shares have not been registered under the U.S. Securities
 Act, and may not be offered or sold in the United States or to a U.S. Person
 unless an exemption from such registration requirements is available;

	
 

	
 

	
 

	
 

	
 

	
(ii) the Issuer has no obligation or present intention of filing a
 registration statement under the U.S. Securities Act in respect of the
 Shares; and

	
 

	
 

	
 

	
 

	
 

	
(iii) the Investor will not engage in any directed selling efforts
 (as defined by Regulation S under the U.S. Securities Act) in the United
 States in respect of the Shares, which would include any activities
 undertaken for the purpose of, or that could reasonably be expected to have
 the effect of conditioning the market in the United States for the resale of
 the Shares;

	
 

	
 

	
 

	
 

	
Compliance with Resale Laws

	
 

	
 

	
 

	
 

	
(k) the
 Investor will comply with Applicable Securities Laws and, if applicable, Rule
 904 (resales through non-US markets) of Regulation S concerning the resale of
 the Shares and all related restrictions (and the Issuer is not in any way
 responsible for such compliance) and shall speak and consult with its own
 legal advisors with respect to such compliance;

	
 

	
 

	
 

	
 

	
Own Expense

	
 

	
 

	
 

	
 

	
(l) the
 Investor acknowledges and agrees that all costs and expenses incurred by the
 Investor (including any fees and disbursements of any special counsel or
 other advisors retained by the Investor) relating to the purchase of the
 Shares shall be borne by the Investor;

	
 

	
 

	
 

	
 

	
Other International Investors

	
 

	
 

	
 

	
 

	
(m) if the
 Investor is resident of an International Jurisdiction (meaning herein a
 country other than Canada or the United States) then:

	
 

	
 

	
 

	
 

	
 

	
(i) the
 Investor is knowledgeable of securities legislation having application or
 jurisdiction over the Investor and the Offering (other than the laws of
 Canada and the U.S.) which would apply to this subscription;

	
 

	
 

	
 

	
 

	
 

	
(ii) the
 Investor is purchasing the Shares pursuant to exemptions from any prospectus,
 registration or similar requirements under the laws of that International
 Jurisdiction and or, if such is not applicable, the Investor is permitted to
 purchase the Investor’s Shares, and the Issuer has no filing obligations in
 the International Jurisdiction;

	
 

	
 

	
 

	
 

	
 

	
(iii) no
 laws in the International Jurisdiction require the Issuer to make any filings
 or seek any approvals of any kind whatsoever from any regulatory authority of
 any kind whatsoever in the International Jurisdiction; and

	
 

	
 

	
 

	
 

	
 

	
(iv) the
 Shares are being acquired for investment only and not with a view to resale
 and distribution within the International Jurisdiction.

- 13 -

6. The Issuer’s Representations

6.1 The Issuer
represents and warrants to the Investor that, as of the date of this
Subscription and at Closing hereunder:

	
 

	
 

	
 

	
(a) the
 Issuer’s Public Record is correct in all material respects and does not omit
 any material information about the issuer;

	
 

	
 

	
 

	
(b) the
 Issuer and its subsidiaries are valid and subsisting corporations duly
 incorporated and in good standing under the laws of the jurisdictions in
 which they are incorporated, continued or amalgamated, and each is a “foreign
 private issuer” as defined in §230.405 of Regulation C promulgated under the
 U.S. Securities Act and shall remain a foreign private issuer;

	
 

	
 

	
 

	
(c) the
 Issuer has complied, or will comply, with Applicable Securities Laws and all
 applicable corporate laws and regulations in connection with the offer, sale
 and issuance of the Securities, and in connection therewith has not engaged
 in any “direct selling efforts,” as such term is defined in Regulation S, or
 any “general solicitation or general advertising” as described in Regulation
 D;

	
 

	
 

	
 

	
(d) the
 Issuer and its subsidiaries are the beneficial owners of the properties,
 business and assets or the interests in the properties, business or assets
 referred to in its Public Record and except as disclosed therein, all
 agreements by which the Issuer or its subsidiaries holds an interest in a
 property, business or asset are in good standing according to their terms,
 and the properties are in good standing under the applicable laws of the
 jurisdictions in which they are situated; 

	
 

	
 

	
 

	
(e) the
 financial statements contained in the Public Record accurately reflect the
 financial position of the Issuer as at the date thereof, and no adverse
 material changes in the financial position of the Issuer have taken place
 since the date of the Issuer’s last financial statements except as filed in
 the Public Record;

	
 

	
 

	
 

	
(f) the
 creation, issuance and sale of the Shares by the Issuer does not and will not
 conflict with and does not and will not result in a breach of any of the
 terms, conditions or provisions of its constating documents or any agreement
 or instrument to which the Issuer is a party;

	
 

	
 

	
 

	
(g) the
 Securities will, at the time of issue, be duly allotted, validly issued,
 fully paid and non-assessable and will be free of all liens, charges and
 encumbrances and the Issuer will reserve sufficient shares in the treasury of
 the Issuer to enable it to issue the Shares;

	
 

	
 

	
 

	
(h) this
 Subscription when accepted has been duly authorized by all necessary
 corporate action on the part of the Issuer and, subject to acceptance by the
 Issuer, constitutes a valid obligation of the Issuer legally binding upon it
 and enforceable in accordance with its terms;

	
 

	
 

	
 

	
(i) neither
 the Issuer nor any of its subsidiaries is a party to any actions, suits or
 proceedings which could materially affect its business or financial
 condition, and to the best of the Issuer’s knowledge no such actions, suits
 or proceedings have been threatened as at the date hereof, except as disclosed
 in the Public Record;

	
 

	
 

	
 

	
(j) no order
 ceasing or suspending trading in the securities of the Issuer nor prohibiting
 sale of such securities has been issued to the Issuer or its directors,
 officers or promoters and to the best of the Issuer’s knowledge no
 investigations or proceedings for such purposes are pending or threatened;
 and

	
 

	
 

	
 

	
(k) except as set out in the Public Record or herein,
 no person has any right, agreement or option, present or future, contingent
 or absolute, or any right capable of becoming a right, agreement or option
 for the issue or allotment of any unissued common shares of the Issuer or any
 other security convertible or exchangeable for any such shares or to require
 the Issuer to purchase, redeem or otherwise acquire any of the issued or
 outstanding shares of the Issuer.

- 14 -

7. Covenants of the Issuer

7.1 The Issuer
hereby covenants with each Investor that it will:

	
 

	
 

	
 

	
(a) offer,
 sell, issue and deliver the Securities pursuant to exemptions from the
 prospectus filing, registration or qualification requirements of Applicable
 Securities Laws and otherwise fulfil all legal requirements required to be
 fulfilled by the Issuer (including without limitation, compliance with all
 Applicable Securities Laws of the Principal Canadian Jurisdictions) in
 connection with the Offering;

	
 

	
 

	
 

	
(b) use its
 best efforts to maintain its status as a “reporting issuer” not in default in
 British Columbia and Alberta for a period of 12 months after the Closing
 Date;

	
 

	
 

	
 

	
(c) within
 the required time, file with the TSX Venture, NZSX and Amex any documents,
 reports and information, in the required form, required to be filed by
 Applicable Securities Laws in connection with the Offering, together with any
 applicable filing fees and other materials; and

	
 

	
 

	
 

	
(d) the
 Issuer will use reasonable commercial efforts to satisfy as expeditiously as
 possible any conditions of the TSX Venture, NZSX and AMEX required to be
 satisfied prior to the Regulatory Acceptance of this Offering.

8. Resale Restrictions and Legending of
Securities

8.1 The
Investor acknowledges that any resale of the Securities will be subject to
resale restrictions contained in the Applicable Securities Laws applicable to
the Issuer, the Investor or any proposed transferee. All Investors will
receive, for the Shares acquired, a certificate bearing the following legend
imprinted thereof:

	
 

	
 

	
 

	
“Unless permitted under securities legislation, the holder of the
 securities shall not trade the securities before [insert that date which is
 four months and a day from the Closing Date.]

	
 

	
 

	
 

	
Without prior written approval of the TSX Venture Exchange and
 compliance with all applicable securities legislation, the securities
 represented by this certificate may not be sold, transferred, hypothecated or
 otherwise traded on or through the facilities of the TSX Venture Exchange or
 otherwise in Canada or to or for the benefit of a Canadian resident until
 [insert that date which is four months and a day from the Closing Date.]”

8.2 Investors
who are U.S Persons or who use herein an address in the U.S. who execute this
Agreement in the United States (which the Issuer will presume absent other
evidence) will receive all Securities certificates bearing the following legend
imprinted thereon as well as the legend referred to in §8.1:

	
 

	
 

	
 

	
“The securities represented hereby have not been and will not be
 registered under the United States Securities Act of 1933, as amended (the
 “U.S. Securities Act”). The holder hereof, by purchasing such securities,
 agrees for the benefit of the Issuer that such securities may be offered,
 sold, pledged or otherwise transferred only (a) to the Issuer, (b) outside
 the United States in accordance with Rule 904 of Regulation S under the U.S.
 Securities Act if applicable, (c) inside the United States (1) pursuant to
 the exemption from the registration requirements under the U.S. Securities
 Act provided by Rule 144 thereunder, if available, and in accordance with
 applicable State securities laws, or (2) in a transaction that does not
 require registration under the U.S. Securities Act or any applicable State
 laws and regulations governing the offer and sale of securities, and the
 holder has prior to such sale furnished to the Issuer an opinion of counsel
 or other evidence of exemption in form and substance reasonably satisfactory
 to the Issuer. Provided that if the Issuer is a “foreign issuer” as that term
 is defined by Regulation S of the U.S. Securities Act at the time of sale, a
 new certificate bearing no restrictive legend, delivery of which will
 constitute “Good Delivery” may be obtained form the transfer agent, upon
 delivery of this certificate and a duly executed declaration, in form
 satisfactory to the Issuer and its transfer agent, to the effect that the
 sale of the securities represented hereby is being made in compliance with
 Rule 904 of Regulation S under the U.S. Securities Act.”

- 15 -

and that any
certificate representing any Securities issued in exchange therefor or in
substitution thereof will bear the same legend, provided, however, that
if the Issuer is a “foreign issuer” as that term is defined by Regulation S
under the U.S. Securities Act at the time of sale of any Shares, a new
certificate bearing no legend may be obtained from transfer agent upon delivery
of the certificate evidencing such securities and a duly executed declaration,
in a form satisfactory to the Company and transfer agent to the effect that the
sale of the securities is being made in compliance with Rule 904 of Regulation
S under the U.S. Securities Act. The Issuer also reserves the right to affix to
the Securities the legend contained in this §8.2 or a similar legend if such
legend is required to be affixed in order to secure Regulatory Acceptance or
compliance with the U.S. Securities Act.

9. Investor’s Consent to Issuer to Correct or
Complete Subscription Agreement

9.1 The
Investor consents to the Company, or its legal counsel, completing or
correcting the Investor’s subscription agreement as may reasonably be required
to finalize it.

10. General

10.1 Time is of
the essence hereof.

10.2 Neither
this Subscription Agreement nor any provision hereof shall be modified,
changed, discharged or terminated except by an instrument in writing signed by
the party against whom any waiver, change, discharge or termination is sought.

10.3 The
parties hereto shall execute and deliver all such further documents and
instruments and do all such acts and things as may either before or after the
execution of this Subscription Agreement be reasonably required to carry out
the full intent and meaning of this Subscription Agreement.

10.4 This
Subscription Agreement shall be subject to, governed by and construed in
accordance with the laws of British Columbia and the laws of Canada as
applicable therein and the Investor hereby irrevocably attorns to the
jurisdiction of the Courts situate therein.

10.5 This
Subscription Agreement may not be assigned by any party hereto.

10.6 The
Issuer shall be entitled to rely on delivery of a facsimile copy of this
Subscription Agreement, and acceptance by the Issuer of a facsimile copy of
this Subscription Agreement shall create a legal, valid and binding agreement
between the Investor and the Issuer in accordance with its terms.

10.7 This
Subscription Agreement may be signed by the parties in as many counterparts as
may be deemed necessary, each of which so signed shall be deemed to be an
original, and all such counterparts together shall constitute one and the same
instrument.

10.8 This
Subscription, including, without limitation, the representations, warranties,
acknowledgements and covenants contained herein, shall survive and continue in
full force and effect and be binding upon the parties notwithstanding the
completion of the purchase of the Shares by the Investor pursuant hereto, the
completion of the issue of Shares of the Issuer and any subsequent disposition
by the Investor of the Shares;

10.9 The
invalidity or unenforceability of any particular provision of this Subscription
shall not affect or limit the validity or enforceability of the remaining
provisions of this Subscription;

10.10 Except as expressly
provided in this Subscription and in the agreements, instruments and other
documents contemplated or provided for herein, this Subscription contains the
entire agreement between the parties with respect to the sale of the Securities
and there are no other terms, conditions, representations or warranties,
whether expressed, implied, oral or written, by statute, by common law, by the
Issuer, by the Investor, or by anyone else;

- 16 -

10.11 All monetary amounts are in US Dollars.

SCHEDULE A

FORM 4C

CORPORATE
PLACEE REGISTRATION FORM

Where
subscribers to a Private Placement are not individuals, the following
information about the placee must be provided. This Form will remain on file
with the Exchange. The corporation, trust, portfolio manager or other entity
(the “Placee”) need only file it on one time basis, and it will be referenced
for all subsequent Private Placements in which it participates. If any of the
information provided in this Form changes, the Placee must notify the Exchange
prior to participating in further placements with Exchange listed companies. If
as a result of the Private Placement, the Placee becomes an Insider of the
Issuer, Insiders of the Placee are reminded that they must file a Personal
Information Form (2A) or, if applicable, Declarations, with the Exchange. 

	
 

	
 

	
 

	
1.

	
Placee
  Information: 

	
 

	
 

	
 

	
(a)

	
Name:
  ______________________________________________________________________________________

	
 

	
 

	
 

	
 

	
(b)

	
Complete
  Address: ____________________________________________________________________________

	
 

	
 

	
 

	
 

	
 

	
____________________________________________________________________________________________

	
 

	
 

	
 

	
 

	
(c)

	
Jurisdiction
  of Incorporation or Creation:
    __________________________________________________________

	
 

	
 

	
 

	
2.

	
(a)

	
Is the
  Placee purchasing securities as a portfolio manager (Yes/No)?    ____________________________________

	
 

	
 

	
 

	
 

	
(b)

	
Is the
  Placee carrying on business as a portfolio manager outside of Canada
  (Yes/No)?

	
 

	
 

	
 

	
 

	
 

	
______________

	
 

	
 

	
 

	
3.

	
If the answer
  to 2(b) above was “Yes”, the undersigned certifies that: 

	
 

	
 

	
 

	
(a)

	
It is
  purchasing securities of an Issuer on behalf of managed accounts for which it
  is making the investment decision to purchase the securities and has full
  discretion to purchase or sell securities for such accounts without requiring
  the client’s express consent to a transaction; 

	
 

	
 

	
 

	
 

	
(b)

	
it carries
  on the business of managing the investment portfolios of clients through
  discretionary authority granted by those clients (a “portfolio manager”
  business) in ___________________ [jurisdiction], and it is permitted by law to carry on a
  portfolio manager business in that jurisdiction;

	
 

	
 

	
 

	
 

	
(c)

	
it was not
  created solely or primarily for the purpose of purchasing securities of the
  Issuer; 

	
 

	
 

	
 

	
 

	
(d)

	
the total
  asset value of the investment portfolios it manages on behalf of clients is
  not less than $20,000,000; and 

	
 

	
 

	
 

	
 

	
(e)

	
it has no
  reasonable grounds to believe, that any of the directors, senior officers and
  other insiders of the Issuer, and the persons that carry on investor
  relations activities for the Issuer has a beneficial interest in any of the
  managed accounts for which it is purchasing. 

	
 

	
 

	
 

	 

	
FORM 4C

  (as at March 11, 2004)

	
CORPORATE PLACEE REGISTRATION FORM

	
Page 1

	
 

	
 

	
4.

	
If the
  answer to 2(a) above was “No”, please provide the names and addresses of
  control persons of the Placee: 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name 

	
City 

	
Province or
State 

	
Country 

	
 

	 

	 

	 

	 

The
undersigned acknowledges that it is bound by the provisions of applicable
Securities Law, including provisions concerning the filing of insider reports
and reports of acquisitions (See for example, sections 87 and 111 of the Securities Act (British Columbia) and
sections 176 and 182 of the Securities Act
(Alberta). 

Acknowledgement - Personal Information 

“Personal
Information” means any information about an identifiable individual, and
includes information contained in sections 1, 2 and 4, as applicable, of this
Form. 

The
undersigned hereby acknowledges and agrees that it has obtained the express
written consent of each individual to: 

	
 

	
 

	
(a)

	
the
  disclosure of Personal Information by the undersigned to the Exchange (as
  defined in Appendix 6B) pursuant to this Form; and 

	
 

	
 

	
(b)

	
the
  collection, use and disclosure of Personal Information by the Exchange for the
  purposes described in Appendix 6B or as otherwise identified by the Exchange,
  from time to time. 

Dated at
____________________________________________ on ______________________________________________. 

	
 

	
 

	
 

	 

	
 

	
(Name of
  Purchaser - please print)

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
(Authorized
  Signature)

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
(Official
  Capacity - please print)

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
(please
  print name of individual whose signature appears above)

THIS IS NOT A PUBLIC DOCUMENT

	
 

	
 

	
 

	 

	
FORM 4C

  (as at March 11, 2004)

	
CORPORATE PLACEE REGISTRATION FORM

	
Page 2

SCHEDULE B

REPRESENTATION LETTER

(FOR ACCREDITED INVESTORS-Canadian Investors
only)

	
 

	
 

	
TO: Austral Pacific Energy Ltd. (“Austral”)

In connection
with the purchase of common shares in the capital of Austral (“Shares”) by the
undersigned subscriber or, if applicable, the principal on whose behalf the
undersigned is purchasing as agent (the “Subscriber” for the purposes of this
Schedule B), the Subscriber hereby represents, warrants, covenants and
certifies to Austral that:  

	
 

	
 

	
1.

	
The
Subscriber is purchasing the Shares as principal for its own account or is
deemed to be acting as principal pursuant to National Instrument 45-106
entitled “Properties and Registration Exemptions” (“NI 45-106”);  

	
 

	
 

	
2.

	
The
  Subscriber is an “accredited investor” within the meaning of NI 45-106 by
  virtue of satisfying the indicated criterion as set out in Appendix “A” to
  this Representation Letter; and 

	
 

	
 

	
3.

	
Upon
  execution of this Schedule B by the Subscriber, this Schedule B shall be
  incorporated into and form a part of the Subscription Agreement. 

Dated:
_________________________, 2006. 

	
 

	
 

	
 

	
 

	 

	
 

	
Print name of Subscriber

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	 

	
 

	
 

	
Signature

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
Print name of Signatory (if
  different from Subscriber)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
Title

IMPORTANT: PLEASE INITIAL APPENDIX “A” ON THE
NEXT PAGE

APPENDIX “A”

TO SCHEDULE B

	
 

	
 

	
 

	
 

	
Accredited Investor - (defined in NI 45-106)
  means:

	
 

	
 

	
 

	
o

	
(a) an
  individual who, either alone or with a spouse, beneficially owns, directly or
  indirectly, financial assets having an aggregate realizable value that before
  taxes, but net of any related liabilities, exceeds $1,000,000; 

	
 

	
 

	
 

	
 

	
o

	
(b) an
  individual whose net income before taxes exceeded $200,000 in each of the 2
  most recent calendar years or whose net income before taxes combined with
  that of a spouse exceeded $300,000 in each of the 2 most recent calendar
  years and who, in either case, reasonably expects to exceed that net income
  level in the current calendar year; 

	
 

	
 

	
 

	
 

	
o

	
(c) an
  individual who, either alone or with a spouse, has net assets of at least
  $5,000,000; 

	
 

	
 

	
 

	
 

	
o

	
(d) a
  person, other than an individual or investment fund, that has net assets of
  at least $5,000,000 as shown on its most recently prepared financial
  statements; 

	
 

	
 

	
 

	
 

	
o

	
(e) a person
  in respect of which all of the owners of interests, direct, indirect or
  beneficial, except the voting securities required by law to be owned by
  directors, are persons that are accredited investors; 

	
 

	
 

	
 

	
 

	
o

	
(f) a
  Canadian financial institution, or a Schedule III bank; 

	
 

	
 

	
 

	
 

	
o

	
(g) the
  Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);
  

	
 

	
 

	
 

	
 

	
o

	
(h) a
  subsidiary of any person referred to in paragraphs (f) or (g), if the person
  owns all of the voting securities of the subsidiary, except the voting
  securities required by law to be owned by directors of that subsidiary; 

	
 

	
 

	
 

	
 

	
o

	
(i) a person
  registered under the securities legislation of a jurisdiction of Canada as an
  adviser or dealer, other than a person registered solely as a limited market
  dealer under one or both of the Securities
  Act (Ontario) or the Securities
  Act (Newfoundland and Labrador); 

	
 

	
 

	
 

	
 

	
o

	
(j) an
  individual registered or formerly registered under the securities legislation
  of a jurisdiction of Canada as a representative of a person referred to in
  paragraph (i); 

	
 

	
 

	
 

	
 

	
o

	
(k) the
  Government of Canada or a jurisdiction of Canada, or any crown corporation,
  agency or wholly owned entity of the Government of Canada or a jurisdiction
  of Canada; 

	
 

	
 

	
 

	
 

	
o

	
(l) a
  municipality, public board or commission in Canada and a metropolitan
  community, school board, the Comité de gestion de la taxe scolaire de l’île
  de Montréal or an intermunicipal management board in Québec; 

	
 

	
 

	
 

	
 

	
o

	
(m) any
  national, federal, state, provincial, territorial or municipal government of
  or in any foreign jurisdiction, or any agency of that government; 

	
 

	
 

	
 

	
 

	
o

	
(n) a
  pension fund that is regulated by either the Office of the Superintendent of
  Financial Institutions (Canada) or a pension commission or similar regulatory
  authority of a jurisdiction of Canada; 

	
 

	
 

	
 

	
 

	
o

	
(o) an
  investment fund that distributes or has distributed its securities only to

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
a person
  that is or was an accredited investor at the time of the distribution;

- 2 -

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
a person
  that acquires or acquired securities in the circumstances referred to in
  Sections 2.10 [Minimum amount investment],
  and 2.19 [Additional investment in
  investment funds] of NI 45-106; OR 

	
 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
a person
  described in paragraph (i) or (ii) that acquires or acquired securities under
  Section 2.18 [Investment fund reinvestment]
  of NI 45-106; 

	
 

	
 

	
 

	
 

	
o

	
(p) an
  investment fund that distributes or has distributed securities under a
  prospectus in a jurisdiction of Canada for which the regulator or, in Québec,
  the securities regulatory authority, has issued a receipt;

	
 

	
 

	
 

	
 

	
o

	
(q) a trust
  company or trust corporation registered or authorized to carry on business
  under the Trust and Loan Companies Act (Canada)
  or under comparable legislation in a jurisdiction of Canada or a foreign
  jurisdiction, acting on behalf of a fully managed account managed by the
  trust company or trust corporation, as the case may be;

	
 

	
 

	
 

	
 

	
o

	
(r) a person
  acting on behalf of a fully managed account managed by that person, if that
  person

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
is
  registered or authorized to carry on business as an adviser or the equivalent
  under the securities legislation of a jurisdiction of Canada or a foreign
  jurisdiction; and

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
in Ontario,
  is purchasing a security that is not a security of an investment fund;

	
 

	
 

	
 

	
 

	
o

	
(s) a
  registered charity under the Income Tax
  Act (Canada) that, in regard to the trade, has obtained advice
  from an eligibility adviser or an adviser registered under the securities
  legislation of the jurisdiction of the registered charity to give advice on
  the securities being traded; 

	
 

	
 

	
 

	
 

	
o

	
(t) an
  entity organized in a foreign jurisdiction that is analogous to any of the entities
  referred to in paragraphs (f) to (i) or paragraph (n) in form and function; 

	
 

	
 

	
 

	
 

	
o

	
(u) an
  investment fund that is advised by a person registered as an adviser or a
  person that is exempt from registration as an adviser; OR 

	
 

	
 

	
o

	
(v) a person
  that is recognized or designated by the securities regulatory authority or,
  except in Ontario and Québec, the regulator as 

	
 

	
 

	
 

	
 

	
(i)

	
an
  accredited investor; or 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
an exempt
  purchaser in Alberta or British Columbia after NI 45-106 comes into force; 

	
 

	
 

	
 

	
 

	
and for
  purposes hereof:. 

	
 

	
 

	
 

	
 

	
(a)

	
“Canadian financial institution” means

	
 

	
 

	
 

	
 

	
 

	
(i)

	
an association governed by
  the Cooperative Credit Associations Act (Canada)
  or a central cooperative credit society for which an order has been made
  under section 473(1) of the Cooperative
  Credit Associations Act (Canada), or 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
a bank, loan corporation,
  trust company, trust corporation, insurance company, treasury branch, credit
  union, caisse populaire, financial services cooperative, or league that, in each
  case, is authorized by an enactment of Canada or a jurisdiction of Canada to
  carry on business in Canada or a jurisdiction of Canada; 

	
 

	
 

	
 

	
 

	
(b)

	
“control person” has
  the meaning ascribed to that term in securities legislation except Ontario
  where “control person” means any person that holds or is one of a combination
  of persons that hold

	
 

	
 

	
 

	
 

	
 

	
(i)

	
a sufficient number of any
  of the securities of an issuer so as to affect materially the control of the
  issuer, or

- 3 -

	
 

	
 

	
 

	
 

	
(ii)

	
more than 20% of the outstanding
  voting securities of an issuer except where there is evidence showing that
  the holding of those securities does not affect materially the control of
  that issuer; 

	
 

	
 

	
 

	
(c)

	
“eligibility adviser” means
  a person that is registered as an investment dealer or in an equivalent
  category of registration under the securities legislation of the jurisdiction
  of a purchaser and authorized to give advice with respect to the type of
  security being distributed;

	
 

	
 

	
 

	
(d)

	
“executive officer” means,
  for an issuer, an individual who is

	
 

	
 

	
 

	
 

	
(i)

	
a chair, vice-chair or
  president, 

	
 

	
 

	
 

	
 

	
(ii)

	
a vice-president in charge
  of a principal business unit, division or function including sales, finance
  or production, 

	
 

	
 

	
 

	
 

	
(iii)

	
an officer of the issuer or
  any of its subsidiaries and who performs a policy-making function in respect
  of the issuer, or

	
 

	
 

	
 

	
 

	
(iv)

	
performing a policy-making
  function in respect of the issuer; 

	
 

	
 

	
 

	
(e)

	
“financial assets” means
  (i) cash, (ii) securities or (iii) a contract of insurance, a deposit or an evidence
  of a deposit that is not a security for the purposes of securities
  legislation;

	
 

	
 

	
 

	
(f)

	
“founder” 
  means, in respect of an issuer,
  a person who,

	
 

	
 

	
 

	
 

	
(i)

	
acting alone, in
  conjunction or in concert with one or more persons, directly or indirectly, takes
  the initiative in founding, organizing or substantially reorganizing the
  business of the issuer, and 

	
 

	
 

	
 

	
 

	
(ii)

	
at the time of the trade is
  actively involved in the business of the issuer; 

	
 

	
 

	
 

	
(g)

	
“fully managed account” means an account of a client for which a
  person makes the investment decisions if that person has full discretion to
  trade in securities for the account without requiring the client’s express
  consent to a transaction;

	
 

	
 

	
 

	
(h)

	
“investment fund” has
  the meaning ascribed thereto in National Instrument 81-106 - Investment Fund Continuous Disclosure;

	
 

	
 

	
 

	
(i)

	
“person” includes

	
 

	
 

	
 

	
 

	
(i)

	
an individual,

	
 

	
 

	
 

	
 

	
(ii)

	
a corporation,

	
 

	
 

	
 

	
 

	
(iii)

	
a partnership, trust, fund
  and an association, syndicate, organization or other organized group of persons,
  whether incorporated or not, and

	
 

	
 

	
 

	
 

	
(iv)

	
an individual or other
  person in that person’s capacity as a trustee, executor, administrator or
  personal or other legal representative; 

	
 

	
 

	
 

	
(j)

	
“related liabilities” means

	
 

	
 

	
 

	
 

	
(i)

	
liabilities incurred or
  assumed for the purpose of financing the acquisition or ownership of
  financial assets, or 

	
 

	
 

	
 

	
 

	
(ii)

	
liabilities that are
  secured by financial assets. 

	
 

	
 

	
 

	
(k)

	
“spouse” means,
  an individual who,

	
 

	
 

	
 

	
 

	
(i)

	
is married to another
  individual and is not living separate and apart within the meaning of the Divorce Act (Canada), from the other
  individual, 

	
 

	
 

	
 

	
 

	
(ii)

	
is living with another
  individual in a marriage-like relationship, including a marriage-like
  relationship between individuals of the same gender, or 

- 4 -

	
 

	
 

	
 

	
 

	
(iii)

	
in Alberta, is an
  individual referred to in paragraph (i) or (ii) immediately above or is an
  adult interdependent partner within the meaning of the Adult Interdependent Relationships Act (Alberta);
  and

	
 

	
 

	
 

	
(l)

	
“subsidiary” means an issuer that is controlled directly
or indirectly by another issuer and includes a subsidiary of that subsidiary; 

	
 

	
 

	
 

	
Affiliated Entities and Control

	
 

	
 

	
 

	
1.

	
An issuer is
  considered to be an affiliate of another issuer if one of them is a
  subsidiary of the other, or if each of them is controlled by the same person.

	
 

	
 

	
 

	
2.

	
A person
  (first person) is considered to control another person (second person) if

	
 

	
 

	
 

	
 

	
(a)

	
the first
  person, directly or indirectly, beneficially owns or exercises control or
  direction over securities of the second person carrying votes which, if
  exercised, would entitle the first person to elect a majority of the
  directors of the second person, unless the first person holds the voting
  securities only to secure an obligation,

	
 

	
 

	
 

	
 

	
(b)

	
the second
  person is a partnership, other than a limited partnership, and the first
  person holds more than 50% of the interests in the partnership, or

	
 

	
 

	
 

	
 

	
(c)

	
the second
  person is a limited partnership and the general partner of the limited
  partnership is the first person.

SCHEDULE
C

CERTIFICATE
OF U.S. PURCHASER

This form must be completed by United States
investors (only)

A “United
States investor” is any person in the United States or any “U.S. person” as
defined in Regulation S under the United States Securities Act of 1933, as
amended. This will include (a) any natural person resident in the United
States; (b) any partnership or corporation organized or incorporated under the
laws of the United States; (c) any trust of which any trustee is a U.S. person;
(d) any partnership or corporation organized outside the United States by a
U.S. person principally for the purpose of investing in securities not
registered under the U.S. Securities Act of 1933, unless it is organized or
incorporated, and owned, by accredited investors who are not natural persons,
estates or trusts; (e) any estate of which any executor or administrator is a
U.S. person.

2. The Investor covenants, represents and
warrants to Austral Pacific Energy Ltd. (the “Issuer”) that: 

	
 

	
 

	
 

	
 

	
(a) it understands that the Shares have not been and will not be
 registered under the U.S. Securities Act and that the sale contemplated
 hereby is being made in reliance on the exemption from such registration
 requirement provided by Rule 506 of Regulation D;

	
 

	
 

	
 

	
 

	
(b) it acknowledges that it has not purchased the Shares as a result
 of any form of general solicitation or general advertising, including
 advertisements, articles, notices or other communications published in any
 newspaper, magazine or similar media or broadcast over radio, or television,
 or any seminar or meeting whose attendees have been invited by general
 solicitation or general advertising;

	
 

	
 

	
 

	
 

	
(c) it understands and agrees that there may be material tax
 consequences to the Investor of an acquisition, disposition or exercise of
 any of the Shares. The Issuer gives no opinion and makes no representation
 with respect to the tax consequences to the Investor under United States,
 state, local or foreign tax law of the undersigned’s acquisition or
 disposition of such securities. In particular, no determination has been made
 whether the Issuer will be a “passive foreign investment company” (“PFIC”)
 within the meaning of Section 1291 of the United States Internal Revenue Code;

	
 

	
 

	
 

	
 

	
(d) it understands and agrees that the financial statements of the
 Issuer have been prepared in accordance with Canadian generally accepted
 accounting principles, which differ in some respects from United States
 generally accepted accounting principles, and thus may not be comparable to
 financial statements of United States companies;

	
 

	
 

	
 

	
 

	
(e) it understands and acknowledges that upon the issuance thereof,
 and until such time as the same is no longer required under the applicable
 requirements of the U.S. Securities Act or applicable state securities laws
 and regulations, the certificates representing the Shares will bear a legend
 in substantially the following form:

	
 

	
 

	
 

	
 

	
 

	
“The securities represented hereby have not been and will not be
 registered under the United States Securities Act of 1933, as amended (the
 “U.S. Securities Act”). The holder hereof, by purchasing such securities,
 agrees for the benefit of the Issuer that such securities may be offered,
 sold, pledged or otherwise transferred only (a) to the Issuer, (b) outside
 the United States in accordance with Rule 904 of Regulation S under the U.S.
 Securities Act if applicable, (c) inside the United Sates (1) pursuant to the
 exemption from the registration requirements under the U.S. Securities Act
 provided by Rule 144 thereunder, if available, and in accordance with
 applicable State securities laws, or (2) in a transaction that does not
 require registration under the U.S. Securities Act or any applicable State
 laws and regulations governing the offer and sale of securities, and the
 holder has prior to such sale furnished to the Issuer an opinion of counsel
 or other evidence of exemption in form and substance reasonably satisfactory
 to Austral. Provided 

- 2 -

	
 

	
 

	
 

	
 

	
 

	
that if Austral is a “foreign issuer” as that term is defined by
 Regulation S of the U.S. Securities Act at the time of sale, a new
 certificate bearing no restrictive legend, delivery of which will constitute
 “Good Delivery” may be obtained form the transfer agent, upon delivery of
 this certificate and a duly executed declaration, in form satisfactory to
 Austral and its transfer agent, to the effect that the sale of the securities
 represented hereby is being made in compliance with Rule 904 of Regulation S
 under the U.S. Securities Act.”

	
 

	
 

	
 

	
 

	
If the
 Issuer is a “foreign issuer” within the meaning of Regulation S under the
 U.S. Securities Act at the time of sale, a new certificate, which will
 constitute “good delivery”, will be made available to the Investor upon
 provision by the Investor to the transfer agent of a declaration (in the form
 attached as Appendix “A”) that the sale of the securities represented
 thereby is being made in compliance with Rule 904 of Regulation S under the
 U.S. Securities Act. 

	
 

	
 

	
 

	
(f) it consents to the Issuer making a notation on its records or
 giving instruction to the registrar and transfer agent of the Issuer in order
 to implement the restrictions on transfer set forth and described herein;

	
 

	
 

	
 

	
(g) if an individual, it is a resident of the state or other
 jurisdiction listed in its address on the signature page of the Subscription
 Agreement, or if the Investor is not an individual, the office of the
 Investor at which the Investor received and accepted the offer to purchase
 the Issuer’s Shares is the address listed on the signature page of the
 Subscription Agreement.

	
 

	
 

	
 

	
(h) it has such knowledge and experience in financial and business
 matters as to be capable of evaluating the merits and risks of an investment
 in the Shares and it is able to bear the economic risk of loss of its entire
 investment;

	
 

	
 

	
 

	
(i) the Issuer has provided to it the opportunity to ask questions
 and receive answers concerning the terms and conditions of the offering and
 it has had access to such information concerning the Issuer as it has
 considered necessary or appropriate in connection with its investment
 decision to acquire the Shares;

	
 

	
 

	
 

	
(j) it is acquiring the Shares for its own account, for investment
 purposes only and not with a view to any resale, distribution or other
 disposition of the Shares in violation of the United States securities laws;

	
 

	
 

	
 

	
(k) if it decides to offer, sell or otherwise transfer any of the
 Shares, it will not offer, sell or otherwise transfer any of such Shares
 directly or indirectly, unless

	
 

	
 

	
 

	
 

	
 

	
(i) the sale is to the Issuer;

	
 

	
 

	
 

	
 

	
 

	
(ii) the sale is made outside the United States in a transaction
 meeting the requirements of Rule 904 of Regulation S under the U.S.
 Securities Act and in compliance with applicable local laws and regulations;

	
 

	
 

	
 

	
 

	
 

	
(iii) the sale is made pursuant to the exemption from the registration
 requirements under the U.S. Securities Act provided by Rule 144 thereunder
 and in accordance with any applicable state securities or “Blue Sky” laws; or

	
 

	
 

	
 

	
 

	
 

	
(iv) the Shares are sold in a
 transaction that does not require registration under the U.S. Securities Act
 or any applicable state laws and regulations governing the offer and sale of
 securities, and, in the case of clauses (ii) or

 (iv) above, it has prior to
 such sale furnished to the Issuer an opinion of counsel or other evidence of
 exemption in form and substance reasonably satisfactory to the Issuer;

	
 

	
 

	
 

	
 

	
(l) It is an “accredited investor” as defined in Regulation D by
 virtue of satisfying one or more of the categories indicated below
 (please place your initials on the appropriate line(s)):

- 3 -

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 1.

	
 

	
A bank, as defined in Section 3(a)(2) of the U.S. Securities Act,
 whether acting in its individual or fiduciary capacity; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 2.

	
 

	
A savings and loan association or other institution as defined in
 Section 3(a)(5)(A) of the U.S. Securities Act, whether acting in its
 individual or fiduciary capacity; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 3.

	
 

	
A broker or dealer registered pursuant to Section 15 of the Securities
 Exchange Act of 1934; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 4.

	
 

	
An insurance company as defined in Section 2(13) of the U.S.
 Securities Act; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 5.

	
 

	
An investment company registered under the Investment Issuer Act of 1940;
 or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 6.

	
 

	
A business development company as defined in Section 2(a)(48) of the Investment
 Issuer Act of 1940; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 7.

	
 

	
A small business investment company licensed by the U.S. Small
 Business Administration under Section 301(c) or (d) of the Small
 Business Investment Act of 1958; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 8.

	
 

	
A plan established and maintained by a state, its political
 subdivision or any agency or instrumentality of a state or its political
 subdivisions, for the benefit of its employees, with assets in excess of
 US$5,000,000; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 9.

	
 

	
An employee benefit plan within the meaning of the Employee
 Retirement Income Security Act of 1974 in which the investment
 decision is made by a plan fiduciary, as defined in Section 3(21) of such
 Act, which is either a bank, savings and loan association, insurance company
 or registered investment advisor, or an employee benefit plan with total
 assets in excess of US$5,000,000 or, if a self-directed plan, the investment
 decisions are made solely by persons who are accredited investors; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 10.

	
 

	
A private business development company as defined in Section
 202(a)(22) of the Investment Advisors Act of 1940; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 11.

	
 

	
An organization described in Section 501(c)(3) of the Internal
 Revenue Code, a corporation, a Massachusetts or similar business
 trust, or a partnership, not formed for the specific purpose of acquiring the
 Shares, with total assets in excess of US$5,000,000; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 12.

	
 

	
A director, executive officer or general partner of the Issuer; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 13.

	
 

	
A natural person whose individual net worth, or joint net worth with
 that person’s spouse, at the time of this purchase exceeds US$1,000,000; or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 14.

	
 

	
A natural person who had an individual income in excess of US$200,000
 in each year of the two most recent years or joint income with that person’s
 spouse in excess of US$300,000 in each of those years and has a reasonable
 expectation of reaching the same income level in the current year; or

- 4 -

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 15.

	
 

	
A trust, with total assets in excess of US$5,000,000, not formed for
 the specific purpose of acquiring the securities offered, whose purchase is
 directed by a sophisticated person as described in SEC Rule 506(b)(2)(ii); or

	
 

	
 

	
 

	
 

	
 

	
_____

	
 

	
Category 16.

	
 

	
An entity in which each of the equity owners meets the requirements
 of one of the above categories.

ONLY UNITED STATES INVESTORS NEED TO COMPLETE
AND SIGN

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
Date

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
Duly authorized signatory for Investor

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
(Print name of Investor)

	
 

Appendix “A” to

CERTIFICATE
OF U.S. PURCHASER

FORM OF DECLARATION FOR REMOVAL OF LEGEND

	
 

	
 

	
TO:

	
COMPUTERSHARE TRUST
 COMPANY OF CANADA

	
 

	
as registrar and transfer
 agent for Common Shares of Austral Pacific Energy Ltd.

	
 

	
2nd Floor, 510
 Burrard Street

	
 

	
Vancouver BC CANADA

The undersigned (a)
acknowledges that the sale of the securities of Austral Pacific Energy Ltd (the
“Company”) to which this declaration relates is being made in reliance on Rule
904 of Regulation S under the United States Securities Act of 1933, as amended
(the “U.S. Securities Act”) and (b) certifies that (1) the undersigned is not
an affiliate of the Company (as that term is defined in Rule 405 under the U.S.
Securities Act), (2) the offer of such securities was not made to a person in
the United States and any person acting on its behalf reasonably believed that
the buyer was outside the United States, or (B) the transaction was executed
in, on or through the facilities of the applicable Canadian stock exchanges
designated in Regulation S or any other Designated Offshore Securities Market
as defined in Regulation S under the U.S. Securities Act and neither the seller
nor any person acting on its behalf knows that the transaction has been
prearranged with a buyer in the United States, (3) neither the seller nor any
affiliate of the seller nor any person acting on any of their behalf has
engaged or will engage in any directed selling efforts in the United States in
connection with the offer and sale of such securities, (4) the sale is bona
fide and not for the purpose of “washing off” the resale restrictions imposed
because the securities are “restricted securities” (as such term is defined in
Rule 144(a)(3) under the U.S. Securities Act) and (5) the contemplated sale is
not a transaction, or part of a series of transaction which, although in
technical compliance with Regulation S under the U.S. Securities Act, is part
of a plan or scheme to evade the registration provisions of the U.S. Securities
Act. Terms used herein have the meanings given to them by Regulation S under
the U.S. Securities Act.

	
 

	
 

	
 

	
 

	
 

	
 

	
Dated:

	
 

	
 

	
 

	
 

	
 

	
 

	 

	
 

	 

	
 

	
 

	
 

	
 

	
Name of Seller

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	
   Name:

	
 

	
 

	
 

	
 

	
 

	
   Title:

	
 

Affirmation by Seller’s Broker-Dealer

We have read the foregoing
representations of our customer, __________________________ (the
“Seller”) dated ________________________, with regard to our sale, for such
Seller’s account, of the __________________ Shares, represented by certificate
number ___________ (the “Shares”), of the Company described therein, and on
behalf of ourselves we certify and affirm that (A) we have no knowledge that
the transaction had been prearranged with a buyer in the United States, (B) the
transaction was executed on or through the facilities of the Toronto Stock
Exchange and (C) neither we, nor any person acting on our behalf, engaged in
any directed selling efforts in connection with the offer and sale of such
Securities. Terms used herein have the meanings given to them by Regulation S.

	
 

	
 

	
 

	
 

	 

	
 

	
Name of Firm

	
 

	
 

	
 

	
 

	
 

	
By:

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