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re: worth watching- announcement THe following announcement is interesting.


First Oil & Gas Deal -Farmin to Maari-2 Appraisal Well
Document date: Mon 13 Jan 2003 Published: Mon 13 Jan 2003 18:35:45
Document No: 230664  Document part: A
Market Flag: Y
Classification: Progress Report
CARPENTER PACIFIC RESOURCES NL 2003-01-13 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
The board of Carpenter Pacific Resources NL (ASX code "CPC") are very
pleased to announce that Delta Oil Taranaki Pty Ltd ("Delta"), a
wholly owned subsidiary of Delta Oilfield Developments Limited
(Carpenter Pacific's joint 50/50 subsidiary with Westgold Resources
NL, ASX code "WGR") has today executed a Farmin Agreement with Todd
Petroleum Mining Company Limited ("TPM") to acquire a 5% interest in
petroleum exploration permit PEP38413 in the offshore Taranaki Basin
in New Zealand, which contains the Maari and Manaia oil fields.
A planned 2 to 3 week appraisal well (Maari-2) was spudded on the
morning of January 10, 2003 using the semi-submersible Ocean Bounty,
with a positive result from this well likely to confirm sufficient
recoverable oil volumes in the Maari field to underpin a development
decision which may be made as early as the 1st half of 2004.
This 5% interest will be held by Delta Oilfield Developments Limited
(via its wholly owned subsidiary Delta Oil Taranaki Pty Ltd), and the
acquisition is subject to normal Joint Venture and Statutory
approvals.
Post-farmin equity holders in PEP38413 will be:
OMV New Zealand Limited 49% (Operator)
OMV Australia Pty Ltd 30%
Todd Petroleum Mining Company Limited 16%
Delta Oil Taranaki Pty Ltd 5%
The principal terms of this Farmin Agreement are as follows:
Delta will earn its 5% interest in this project by carrying TPM
through the Maari-2 appraisal well. This carry will be capped by a
gross well cost of US$5.0 million, with Delta's net farmin cost
contributed in equal amounts on behalf of CPC/WGR. Delta's
contribution to any Joint Venture costs exceeding this will be 5%
(its equity share - split 50/50 CPC/WGR).
The Maari oil field is the largest undeveloped offshore oil field in
New Zealand and is situated in 100m water depth, approximately 40km
south of the giant Maui gas field (refer to Attachment - Location
Map). The principal oil accumulation was discovered in sandstones of
the Miocene Moki Formation at approximately 1300mSS by the Moki-1
exploration well in 1983, and appraised by the Moki-2A well in 1985.
The field was further successfully appraised by Maari-1 in November
1998, which included a horizontal production test that flowed 4,400
barrels oil per day (Maari-1A sidetrack). Subsequent to
drilling/testing of Maari-1/1A some 200km 2 of 3D seismic has been
shot over the field area and conceptual studies of development
alternatives have been made. It should be noted that as the reservoir
was adequately flow tested in 1998, it is not envisaged that the
Maari-2 well will be tested during the planned drilling, coring and
logging program.
Although Delta believes that subject to the results of the Maari-2
well, the primary Moki Formation oil reserve within the Maari field
will be commercially developed, the details of current reserve
estimates are the subject of strict confidentiality and cannot be
publicly released at this time.
This Farmin represents a significant first step in Carpenter
Pacific's move into the upstream oil and gas business, with activity
in PEP38413 during the course of 2003 focused on appraisal and rapid
commercial development of the Maari oil field.
N Doyle
MANAGING DIRECTOR
For further information please contact:
Neil Doyle - 08 9326 5700
"For further information please refer to the Delta Oilfield
Developments Limited link on Westgold Resources NL website
www.westgold.com.au and Carpenter Pacific Resources NL website
www.carpenterpacific.com.au".
A copy of the full announcement, including Map 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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