New Zealand: Kea to Pay up to $3 M in Drilling Costs for the Tuatara-1 Well

AWE plans to test the permit with a wildcat well, Tuatara-1, to be drilled in July using the semi-submersible Tan Kan IV. AWE is currently using the Kan Tan IV to test satellite deposits to its producing Tui field in the Taranaki basin off New Zealand’s North Island.

The Tuatara-1 well will test the Moki sands, which produce in the OMV-operated Maari field, about 80 kilometres north of the planned drill site.

Kea said seismic shot by AWE on the permit suggest the Tuatara structure closely resembles that of the Maari field, with mean recoverable oil reserves in the event of a successful discovery estimated at 80 million barrels of oil.

The well will be drilled in about 50 metres of water.

AWE has previously said it will spend more than $1 billion to develop a significant find at Tuatara using a stand-alone development to tap any reserves at the remote site.

Under the terms of the deal, Kea will pay up to $3 million in drilling costs for the Tuatara-1well in order to earn a 10% stake in PEP 38524.

[mappress]

Source: Keapetroleum, May 24, 2010