junior oilers 12/13 april, page-17

re: junior oilers 12/13 april -hzn Great post Jocam. My brother telephoned me from New Zealand this morning. First some news on HZN. Remember they sold their interest in Cheal for an NPI
(whatever that is).

New truck-mounted rig enters Cheal-1

6 March, 2003  A truck mounted rig, recently imported into the country by a new New Zealand-owned company, South Pacific Drilling Ltd, has commenced re-entry of the Cheal-1 well in onshore Taranaki.

Bill Treuren, one of the founders of the Stratford-based company, said the rig would mainly be used for Mount Messenger or other shallow targets.

The rig is a US-built RWS make with a 150,000 lb pull-back with pipehandler. He said the rig would have a low site impact.

The re-entry at Cheal-1 in the PEP 38738 permit is being carried out for operator Indo-Pacific Energy (NZ) Ltd. The operation will consist of a flow test of sandstones near 1200 m depth which had flowed oil and gas in 1996 tests.

Indo-Pacific Energy said that the Cheal-1 and Cheal-2 wells had both produced gas and oil, but at the time there was no market for the gas. Now the combination of high oil prices, a strengthened gas market and cheaper drilling costs, were the basis for the present Cheal development.

Indo-Pacific intends to conduct a one-month flow test of both wells. Following these production tests, a Cheal-3 well will be considered.

Indo-Pacific Energy said a farmout agreement has been entered into with IRM (Malaysia) Inc., a company associated with Claire Energy Pty Ltd., which will see them fund 44% of the Cheal production tests and a following well, in order to acquire 33% interest in PEP 38738. Following this deal, Indo-Pacific's equity in the permit will become 33.5%.


 




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