Text + enclosures report covers previous exploration, geology, hydrocarbon elements, prospects and leads and recommendations. Potential for substantial reserves is identified in two areas within the permit; a lower Kapuni Group (Kaimiro Fm) sand target in the Waihi structure with reservoir potential of 2TCFGIP or 300 MMBOIP, and a newly identified submarine fan play, the Waikawau lead, with reservoir potential of 200MMBOIP or 1.2 TCF GIP. Awakino South is a separate thrust-faulted anticline south of Awakino with reserves of 250 MMBOIP and sub-commercial gas reserves. The Mangatoa lead in the onshore-offshore part of PPL 38453 is a high risk untested play with Pakawau Group targets with reserve potential of 400 MMBOIP of 1 TCF GIP.