AWE working to complete horizontal drilling at Pateke well

AWE Limited reports that as at 06:00 hours (6.00am NZDT) today, the Pateke-4H development well sidetrack has been drilled to a measured depth of 4,083m, landing at an angle of 90 degrees and having penetrated the hydrocarbon bearing F10 reservoir sand.

Installation of the 9 5/8 inch casing is currently in progress, following which the well will be drilled horizontally through the reservoir to a planned measured depth of 5,361m.

The Kapuni F10 sandstone objective has already been intersected on prognosis with oil shows and real time logging measurements indicating the likely presence of an oil bearing reservoir. The commercial significance of the oil shows will not be clear until the horizontal drilling is completed and the reservoir size and quality is fully assessed.

The Pateke-4H development well is in PMP 38158, offshore New Zealand, and AWE is the Operator. Located in the offshore Taranaki Basin, New Zealand, PMP 38158 contains the Tui, Amokura and Pateke fields and has been producing since 2007.

Pateke-4H is targeting a mapped northern extension of the currently producing Pateke field. The well is being drilled in water depth of approximately 124m with a planned total measured depth of 5,361m, including a 1,272m horizontal section. If successful, the well will be completed for subsequent tie-back to the Tui FPSO (“Umuroa”) for production in 2015.

The Joint Venture partners in PMP 38158 are:

AWE Limited (via subsidiaries) (Operator) 57.5%

New Zealand Oil & Gas (via subsidiaries) 27.5%

Pan Pacific Petroleum (via subsidiaries) 15.0%