re: awe kentbrock
Ocean Patriot set for NZ oil hunt
By Russell Searancke
A thrilling round of offshore oil exploration will begin next month in New Zealand with the arrival of Diamond Offshore's semi-submersible drilling rig Ocean Patriot.
The rig is due in the country in the coming weeks after its journey from Australia's Bass Strait. It will work for two operators - Australian Worldwide Exploration and Tap Oil - until May 2007.
Tap uses the rig first for the Cutter-1 well in the Canterbury basin off the South Island. The probe has reserve potential in the range of 70 to 80 million barrels of recoverable oil.
The semisub then heads up to the Taranaki basin where AWE will drill four oil exploration wells and four development wells for its Tui project.
The two largest prospects are Hector-1 and West Cape-1 in PEP 38483 and PEP 38481, respectively. AWE says both have gross oil potential of more than 100 million barrels each.
The two remaining exploration wells are Tieke-1 and Taranui-1, both of which are located in the Tui oil block PMP 38158 and within quick tie-in distance to the under-construction FPSO.
Tieke-1 has potential recoverable reserves of 5 to 15 million barrels of oil, while Taranui-1 is a contender for 5 to 25 million barrels.
AWE has not finalised the order of drilling but is hoping for Hector-1 first followed by the Tui production wells then the three remaining exploration probes.
AWE is the pre-eminent player in the offshore Taranaki basin. It is the largest acreage holder and operates joint ventures on behalf of majors like Shell, Mitsui and OMV.
AWE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
