Share
NZO
15/04/2014 12:02
MINE
REL: 1202 HRS New Zealand Oil and Gas Limited
MINE: NZO: Pateke-4H drilling update
At 6.00 this morning (NZST) preparations were being made to drill a second
sidetrack well at Pateke-4H, offshore Taranaki, New Zealand, the operator has
advised.
Operations have been unable to drill past an obstruction in the lower portion
of the first sidetrack. A second sidetrack will be drilled from a measured
depth of 3,587 metres with an 8 1/2 inch drilling assembly.
The forward work plan requires the second sidetrack well to be drilled to a
depth of approximately 4,110 metres and intersect the F10 reservoir
horizontally. Drilling will continue through the F10 reservoir section to a
planned total measured depth of 5,361 metres, and then a 6 5/8 inch
production liner will be installed.
The Kapuni F10 sandstone objective has already been intersected as expected
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.
Based on the additional work required to mitigate the operational
difficulties encountered to date, pre-completion well costs have increased
beyond the pre-spud estimate. New Zealand Oil & Gas now expects its share to
exceed US$25 million. An updated estimate of well costs will be released
after horizontal drilling is completed and the production liner has been
installed.
Pateke-4H is targeting a mapped northern extension of the currently producing
Pateke field. If successful, the well will be completed for subsequent
tie-back to the Tui FPSO ("Umuroa") for production in 2015.
New Zealand Oil & Gas has a 27.5 per cent interest in Tui.
The other Tui joint venture partners are:
AWE Limited (via subsidiaries) (Operator) 57.5%
Pan Pacific Petroleum (via subsidiaries) 15.0%
John Pagani
External Relations Manager
+64 21 570 872
End CA:00249501 For:NZO Type:MINE Time:2014-04-15 12:02:25
