Matuku 3D Data Shows Substantial Oil Reserves (New Zealand)

Matuku 3D Data Shows Substantial Oil Reserves (New Zaeland)

Octanex N.L., through its wholly owned subsidiary Octanex NZ Limited, holds a 35% participating interest in each of PEP 51906 and PEP 53537, with OMV holding the remaining 65% participating interest in the permits.

OMV acquired its interest in PEP 51906 through a farmin to Octanex’s then 100% interest in that permit. Octanex and OMV later acquired their interests in PEP 53537 as a result of the companies jointly applying for and being granted that permit. OMV is the Operator of both PEP 51906 and PEP 53537.

Part of the farmin terms for PEP 51906 were that OMV agreed to acquire and meet the costs of the acquisition, processing, mapping and interpretation of a new 3D seismic survey over the Matuku structure within PEP 51906. The Matuku 3D programme was completed in 2011, with mapping and interpretation of the data completed in early 2012.

As a result of the work done on the new 3D data, OMV has advised Octanex that its mapping of Matuku has confirmed it as a valid structural closure at the target levels.

As advised by OMV, the estimated mean recoverable resource, if there are hydrocarbons in the Matuku prospect, is approximately 65 million barrels.

In conjunction with the mapping and interpretation of the Matuku 3D data, OMV has undertaken a variety of studies including basin modelling, vitrinite reflectance analysis and a wide-ranging assessment of the potential for adequate reservoir within the area of the Matuku prospect. The central outcome from the mapping, interpretation and related studies that confirmed the prospect is that OMV has commenced well planning and the acquisition of the long lead time items required for a well. OMV is actively seeking a suitable rig in order to drill Matuku-1 and, if a rig can be secured, the current objective is for drilling to commence in the first half of 2013.

Under the terms of the Farmin Agreement between Octanex and OMV, OMV must commit to the drilling of a well within PEP 51906 by 19 November 2012, or reassign its 65% participating interest to Octanex. If OMV makes that drilling commitment, it will then meet 100% of the costs of drilling the well. OMV has not yet made this drilling commitment.

The studies undertaken by OMV indicate that the Matuku prospect is robust. It has a perceived low risk associated with the existence of the structure, presence of suitable reservoir rock and adequacy of seal. OMV’s basin modelling studies further suggest the presence of a substantial source kitchen (within the Kahurangi Trough to the immediate south and west of the prospect) that is mature for the generation of oil.

PEP 53537 abuts PEP 51906 and is being explored in parallel with the work undertaken in PEP 51906. As a consequence, a discovery at Matuku would have significant positive implications for the prospectivity of PEP 53537.

In conclusion, provided a suitable rig can be obtained, Octanex is confident OMV will commit to the drilling of the Matuku prospect. That prospect is perceived as a substantial oil target.

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Subsea World News Staff , June 26, 2012; Image: Octanex