AWE Spuds Oi-2 Well Off New Zealand
- Business & Finance
AWE Limited, as Operator of Petroleum Mining Permit 38158 offshore Taranaki, New Zealand, advises that the semi-submersible drilling rig “Kan Tan IV” commenced drilling the Oi-2 exploration well at 05:30 hours (5.30am) NZDT on Friday, 13 June 2014.
As at 06:00 hours (6.00am) NZDT today, operations were drilling a 36 inch hole to a planned depth of 230 meters in preparation for the installation of a 30 inch surface conductor.
The Oi-2 exploration well is located approximately 12 kilometres northeast of the Tui Area Oil Fields in water depth of approximately 120 metres. The well objective is to evaluate the hydrocarbon potential of a 4-way dip closed structure similar to the producing Tui, Amokura and Pateke fields and is targeting the same F10 reservoir sandstones.
The Oi-2 exploration well will be drilled vertically to a planned total depth of 3,881 metres and is forecast to take approximately 31 days to complete.
The Oi prospect, in a discovery success case, represents a best estimate Prospective Resource of 11 million barrels of recoverable oil (gross, unrisked P50 estimate). AWE is participating in the Oi-1 exploration well at a reduced equity of 31.25% and has the option to increase its equity participation in any future appraisal drilling and development to 57.5% by exercising existing buyback provisions.
In the event of a commercial discovery, it is envisaged that any subsequent development of the Oi field would involve a tie back to the nearby Tui production facility, the FPSO “Umuroa”, where sufficient production capacity is available.
The Joint Venture partners in PMP 38158 are: AWE Limited (via subsidiaries) (Operator) 57.50%, New Zealand Oil & Gas (via subsidiaries) 27.50% and Pan Pacific Petroleum (via subsidiaries) 15.00%.
Press Release, June 13, 2014