AWE Limited has reported that the Pateke-4H development well was at a total measured depth of 4,772m, including a 749m horizontal section through the reservoir. The total depth was revised from the original 5,381m target due to the high quality of the reservoir encountered and to ensure a stable well bore was achieved for effective completion and production.
The oil-bearing properties of the Kapuni F10 reservoir are positive. Further analysis is required to determine the expected recovery from Pateke-4H, but initial evaluation suggests a resource range consistent with the pre-drill estimate of approximately 2.5 million barrels gross.
Based on the significant additional work required to mitigate the mechanical difficulties and drill the two sidetracks, gross pre-completion well costs have increased beyond the pre-drilling estimate of $55 million (AWE share 32 million). The revised estimated gross pre-completion well cost is $99 million (AWE share $57 million) with completion costs estimated at USD 12 million gross.
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