Octanex Gets New Permit Offshore New Zealand

Octanex N.L. announces that its wholly-owned subsidiary, Octanex NZ Limited (Octanex NZ), has been granted a 100% interest in a fourth petroleum exploration permit, PEP 53473. The permit is located in the offshore Taranaki Basin of New Zealand.

The permit lies between the PEP 51906 and PEP 52593 permits (in which Octanex NZ holds 35% and 100% interests respectively) and is adjacent to the north of the producing Tui oil field.

It extends to an area of approximately 853 km2 and there have been two wells drilled within it (Takapou-1 and Kopuwai-1), both of which encountered oil shows.

Under the terms of the permit, Octanex NZ must reprocess and interpret a minimum of 1000 km of existing 2D seismic data from within and immediately adjacent to the permit and carry out various geotechnical studies. This work is to be  completed within 12 months. Octanex NZ will carry out extensive reprocessing of the vintage 2D seismic data acquired by earlier operators of the permit and surrounding area.

Following the reprocessing and studies, Octanex NZ can either surrender the permit or commit to acquire, process and interpret a minimum of 250 km2 of new 3D seismic data within 24 months of the permit grant date. Despite its location  adjacent to the producing Tui oil field, there has been little modern 3D seismic data acquired within the permit area to date, apart from approximately 40km2 of Tui 3D ingress seismic in the south of the permit where a lead was defined by AWE in 2008.

Should Octanex NZ carry out the new 3D seismic survey then it must either commit to drill a well in the permit area within 36 months of the permit grant date or surrender the permit. As noted above, two wells, Takapou-1 and Kopuwai-1, have been drilled within the area of PEP 53473. Several other wells have also been drilled just outside the area of the permit and provide a useful reference. These include Tane-1 and Taranga-1, plus the Pateke-1 & 2, Amokura-1, Kiwi-1 and Tui-1 wells that were drilled within the area of the Tui production licence.

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Source: Octanex N.L., March 21, 2012