This makes a big difference to HZN. The well being drilled on the Maari structure is an appraisal well not a development well. This greatly reduces the risk of failure. Work out for yourselves what 3000 bopd is worth in earnings to BLO. Of course it is not a lay down mizerre but with Tunisian drilling underway and New Guinea supposed to start soon I will be holding my BLO shares.
Acquires Interest in Maari Development Offshore New Zealand Document date: Mon 13 Jan 2003 Published: Mon 13 Jan 2003 15:35:31 Document No: 150791 Â Document part: A Market Flag: Y Classification: Asset Acquisition HORIZON OIL NL 2003-01-13 ASX-SIGNAL-G HOMEX - Brisbane +++++++++++++++++++++++++ Horizon Oil announces that it has acquired a 10% interest in Petroleum Exploration Permit ("PEP") 38413 from OMV New Zealand Limited ("OMV") for a consideration of US$1.5 million. PEP 38413 contains the undeveloped Maari and Manaia Fields. Horizon Oil estimates proven plus probable reserves in the Moki Formation of the Maari Field to be 35 million barrels of oil ("mmbo"). There is potential for a further 16 mmbo in other sands at Maari and Manaia Field. Horizon Oil will also contribute to 10% of the costs of the Maari 2 appraisal well, which is currently being drilled with the Ocean Bounty semi submersible drilling rig and is designed to increase the level of proven reserves and provide reservoir information for development of the Field. Depending on the outcome of the appraisal well, a development scheme is envisaged assuming horizontal producers supported with gas lift, horizontal water injectors, subsea wellheads and an FPSO. Development capital expenditure, assuming leasing of the FPSO, is estimated to be US$115 million. First production would occur in 2005 at an initial rate of about 30,000 barrels of oil per day. The operator of the appraisal and the development is OMV (a company headquartered in Austria with a regional office in Perth and substantial producing operations in Australia and New Zealand). BACKGROUND The Maari Field is located in exploration permit PEP 38413, offshore Taranaki Basin, approximately 35 km south of the giant Maui gas field and 120 km southwest of New Plymouth in a water depth of approximately 100 meters. The field was discovered by the Moki-1 well in 1983 and subsequently appraised by Moki-2A in 1985 and Maari-1/1 A in 1998. The Moki-1 well flowed 660 bopd from the Moki Formation and a horizontal production test at Maari-1A flowed 4400 bopd from the same interval. The oil is 38 degree API and low GOR: 200-350 scf/bbl . The Maari and Manaia Fields are covered by a 500 sq km 3D survey. (Map) FIELD DESCRIPTION The Maari and Manaia structures are simple dip-closed anticlines at all reservoir levels with top seal provided by interbedded marine shales. Hydrocarbons are encountered at 3 levels in the Maari structure: M2A Sands, Moki Formation and the Mangahewa Formation. The same reservoirs are encountered at Manaia although the larger accumulation appears to be in the Mangahewa Formation rather than the Moki Formation as at Maari. Only one well has been drilled on Manaia, Maui-4, and it was positioned on the flank of the structure. (Maari/Manaia - Schematic Cross Section) CHIEF EXECUTIVE OFFICER'S COMMENTS Horizon Oil's Chief Executive Officer Mr Brent Emmett said:- "We are pleased to be in a development project offshore New Zealand with OMV (69% working interest) and Todd Petroleum Mining Company Limited ("Todd") (21% working interest). This should be a good group and OMV has recently demonstrated its operating skills with the successful development of the Patricia / Baleen Field, offshore Victoria. New Zealand has an attractive fiscal regime petroleum production, Horizon has existing exploration operations in the onshore Taranaki Basin and the country has earlier been flagged as a core area for us. Acquisition of an interest in Maari fits well with Horizons stated objective of participating in lower risk development projects, as well as high potential exploration. If the Maari 2 appraisal well is successful, significant reserves will have been acquired for a low cost and there will be further meaningful upside. A development coming on stream in 2005 is consistent with our objective of building Horizon to a value peak in a 3 - 5 year time frame. B D Emmett CHIEF EXECUTIVE OFFICER A copy of the full announcement, including the digrams, is available in PDF format on www.asx.com.au. Alternatively it is available for purchase from ASX Customer Service on 1 300 300 279.
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