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NZO
10/07/2012 15:58
MINE
REL: 1558 HRS New Zealand Oil and Gas Limited
MINE: NZO: Increase in Kupe Reserves
NZOG (New Zealand Oil & Gas Ltd) is pleased to announce a significant
increase in the proved and probable (2P) reserves in the Kupe gas and oil
field.
As previously announced to the market on 27 June 2012, the Operator, Origin
Energy, has completed a detailed reserves review integrating petrophysical,
fluid sample and well test information with full field static and dynamic
reservoir models.
The Kupe joint venture partners have now concluded their independent
assessments of the Operator's review and reached agreement on the revised
reserves.
The initial 2P reserves (the best estimate of total reserves recoverable from
the field) have been further increased by 13.4%. Added to the reserves
increase announced in July 2010, Kupe ultimate recoverable 2P reserves are
now 25.8% greater than the pre-production estimate.
Under the latest review, initial 2P sales gas reserves are estimated to have
increased by a further 18.3% and LPG reserves by a further 22.8%. Light oil
(condensate) reserves, which were increased by 27% in 2010, have been reduced
by 1.8%, leaving the reserves 25% above the pre-production reserves.
[See PDF release for table of the 2P Ultimate Recoverable Reserves as at 1
July 2012]
To date Kupe has produced approximately 46.3 PJ of sales gas, 190 kilotonnes
of LPG and 4.7 million barrels of light oil (81 PJe).
NZOG Chief Executive Andrew Knight says the reserves review is very good
news.
"Such a substantial increase in NZOG's Kupe reserves is a very pleasing
result. We are evaluating market opportunities for accelerating production
of the additional gas, and will make a further statement on those as and when
we are in a position to do so."
ENDS
Background information
The Kupe gas and oil field lies 30km off the south Taranaki coast. Through
an onshore production station near Hawera it has been producing natural gas,
LPG and light oil since the wells were opened in early December 2009.
Following a commissioning period, permanent production commenced in March
2010. The project was developed for a total cost of approximately $1.3
billion.
Kupe participants are:
Origin Energy Resources (Kupe) Limited 50% (Operator)
Genesis Energy 31%
New Zealand Oil & Gas Limited 15%
Mitsui E&P Australia Pty Ltd 4%
End CA:00224808 For:NZO Type:MINE Time:2012-07-10 15:58:37
