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New
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NGC
To Acquire Kahili gas
Indo-Pacific
Energy Ltd and NGC Holdings Ltd are considering the $NZ8 million development
of the onshore Taranaki Kahili gas-condensate field in onshore Taranaki
permit PEP 38736. The development will include pre-treatment facilities
to separate and store condensate before injection of the untreated Kahili
gas into the pipeline, and an 11 km export pipeline to deliver the gas
from the Kahili-1B well site to NGC's existing Taranaki infrastructure.
The project is likely to be commissioned by the end of 1st quarter 2004.
The
field's sole producing well, Kahili-1B, was expected to produce approximately
5 PJ of gas and gas recovery could increase if the Kahili partners decided
to drill additional wells in the future, NGC said.
Indo-Pacific
Energy is the permit operator and holds a total 45% interest in PEP 38736
and the Kahili field, with Tap (New Zealand) Pty Ltd holding 30% and IRM
(Malaysia) Inc 25%.
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Tuihu-1A
Re-entry In Onshore Taranaki Begins
Swift
Energy New Zealand Ltd and partner New Zealand Oil & Gas Ltd, have
begun re-entry and deepening of the Tuihu-1 well in onshore Taranaki in
the PEP38718 permit, culminating in the side-tracking of the well (Tuihu-1A
) to a total depth of 5100 m.
Swift
Energy is employing an underbalanced drilling technique designed to flow
gas encountered while drilling, and optimise production flow rates in
the event of a discovery.
Tuihu-1
was drilled in late 2000 - early 2001 to a total depth of 4530 m. Gas
shows were encountered in what is now interpreted to be a fractured reservoir
in the Tariki Sandstone. Tuihu-1 was suspended, pending further geological
investigation. The primary targets for Tuihu-1A are reservoirs within
the Tariki Sandstone and the Kapuni Formation.
Tuihu-1A
is 6 km from the Tariki gas pipeline.
Participants
in Tuihu- 1A are Swift Energy NZ Ltd 50%, NZOG 20%, Origin Energy Resources
NZ Ltd 20%, and Indo-Pacific Energy Ltd 10%.
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Discovery
Geo Sinks Rahotu-1 Well Near Cape Egmont
Texas-based
independent Discovery Geo (Australia) Corporation spudded the Rahotu-1
well in August in its PEP 38722 permit in onshore western Taranaki. The
target depth of the well is approximately 3000 m.
Bernett
Martin, President of Discovery Geo, said the well would seek targets in
the Matemateaonga, Mt Messenger and Moki formations within a faulted horst
feature. The company's previous exploratory well was the Warea-1 extension
in May 2002, in a different area of the same permit.
Discovery
Geo last year also acquired an onshore coastal permit PEP 38743 between
Cape Egmont and New Plymouth and an offshore north Taranaki Basin permit
(PEP 38479) south of Kawhia Harbour. New Zealand is now Discovery Geo's
main exploration focus.
Discovery
Geo, with a 12.5% interest, operates the Rahotu-1 permit with US partners
Manti Resources Inc., Ultra Oil & Gas Inc., MM Cone Inc., and King
Operating Corp.
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Commission
Approves Pohokura Joint Marketing
The
Commerce Commission has authorised the Pohokura partners to jointly market
and sell gas from their offshore Taranaki field.
The
commission said it would allow the three competitors (Shell Exploration
NZ Ltd, Todd Petroleum Mining Co. Ltd and OMV New Zealand Ltd) to work
together to jointly market and sell gas produced from the Pohokura field,
situated within permit PEP 38459.
However,
the commission imposed three conditions:
• The partners only jointly market and sell gas after June 30, 2006
if the Pohokura field is fully operational.
• The commission authorises any subsequent sale of any interest in
the field.
• The partners allow reselling of gas to third parties.
Commission
acting chairperson Paula Rebstock said the decision to authorise the joint
marketing arrangement reflected the fact that the development of some
gas fields required a joint venture approach so gas from those fields
could be brought to market as quickly as possible.
"The
commission prefers separate marketing because competition is enhanced
by more competitors. The purchasers of the gas may be able to negotiate
lower prices, and better terms and conditions when they have a choice
of supplier. Joint marketing lessens competition and represents a detriment
to the economy."
However,
the commission accepted that joint marketing should result in the earlier
development of New Zealand's largest new gas field, and that early development
had significant benefits to the New Zealand public.
Ms
Rebstock cautioned other players against assuming any automatic approval
of other joint marketing and selling proposals, saying this decision reflected
the present state of the gas market. A statement by the Pohokura joint
venture partners said that the attaching of significant conditions might
delay development of the project.
However
the largest partner, Shell New Zealand, also said the Commerce Commission's
approval of the application to jointly market gas was a positive step
towards delivery of the project. Shell New Zealand's Chairman, Lloyd Taylor,
said that from a Shell perspective, Pohokura is still on track for first
gas in 2006, despite the company's disappointment about the Commission's
conditions attached to the joint marketing approval.
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Seven
New Coalbed Methane Permits Awarded
Interest
in New Zealand's coal bed methane potential is on the increase with seven
new coalbed methane exploration permits being granted during August, taking
the total number of New Zealand petroleum exploration permits issued for
coalbed methane operations to 21.
Coal
producer Solid Energy (NZ) Ltd acquired four of the recent permits, three
on the West Coast and one in Taranaki. All permits are 100% owned.
Solid
Energy's new West Coast permits are: PEP 38520, a 25 km2 area over its
Spring Creek mine area north of Greymouth; PEP 38516, a 92 km2 area north
of Lake Brunner inland from Greymouth; and PEP 38519, a 103 km2 area around
and underneath the town of Westport. Solid Energy has also been awarded
a coalbed methane permit PEP 38614 over a 2315 km2 area of the Mokau,
Waitawhena and Ohura-Tangarakau coal fields in northern Taranaki.
A
South Island-based company, newly involved in petroleum exploration, B2G
Energy Ltd has been awarded PEP 38224 over a 10 km2 area of the Roxburgh
lignite field in Central Otago. The directors are geologists and engineers
Guy Grocott, George Hooper and Bruce Riddolls.
The
company currently developing the Pike River coal field inland from Greymouth,
Pike River Coal Co. Ltd, has been awarded PEP 38517, a 34 km2 area over
the field.
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Indo-Pacific
Begins Drilling Onshore Wawiri-1
In
early September Indo-Pacific Energy (NZ) Limited and its partners commenced
drilling Wawiri-1 well, the first of two back-to-back wells.
The
Wawiri-1 well will investigate the hydrocarbon potential of a shallow
tilted fault block. The primary target comprises sandstones of the Mt.
Messenger Formation estimated to lie at a depth of about 1170 m. The well
will be drilled to planned depth of 1400m.
Operator
Indo-Pacific Energy holds a 30% equity in the permit with Australian-based
companies Tap Oil and Magellan Petroleum each holding a 25% interest and
Singapore-based Krystal Corporation Pte Ltd 20%.
Wawiri-1
will be followed by the Bluff-1 well, in PEP 38746, which is expected
to be finished before the end of October.
Indo-Pacific
Energy is also scheduled to continue its production test of the re-entered
Cheal-1 well in onshore Taranaki licence PEP 38738 at the end of September.
Chief executive Dave Bennett said the necessary separation equipment should
be on site before the end of the month.
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Offshore-onshore
Taranaki And Deep Water Taranaki Bidding Rounds Will Close Soon
Applications
for the petroleum exploration bidding round over 17 blocks in offshore
north Taranaki and onshore Taranaki will close on October 31st, 2003.
The
nine offshore and eight onshore blocks on offer are located in one of
the most promising exploration theatres in New Zealand for finding oil
or gas accumulations.
Applications
for a separate bidding round for Deep water Taranaki Basin blocks closed
on September 30th, 2003.
For
further information contact: Clyde Bennett, Business Manager-Petroleum,
Crown Minerals. Email: clyde.bennett@med.govt.nz or phone: +64 4 470 2334.
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Indo-Pacific
Energy Plans To Go Deep For Gas
Indo-Pacific
Energy (NZ) Ltd is considering drilling some 'deep gas' wells in onshore
Taranaki during the next two years.
Company
Chief Executive, David Bennett, said that Indo-Pacific Energy's present
exploration emphasis was on drilling the shallow Miocene-aged Mt Messenger
prospects as it was easier to raise the capital necessary for these programmes,
as well as the wells being easier and cheaper to drill than those targeting
deeper formations. However, given the successful raising of exploration
capital for deeper targets, it was possible Indo-Pacific Energy could
drill up to three wells targeting such formations as the Tariki Sandstone
or Eocene-aged Kapuni Group within the next two years. The Akama deep-gas
feature identified by seismic in the PEP 38753 permit was a possible future
target.
"The
experience gained through participation in the current Tuihu- 1A re-entry
well should be invaluable in planning and operating Indo-Pacific Energy's
own deep gas drilling projects over the coming two years", Dr Bennett
said.
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Two
Canterbury Basin Petroleum Exploration Permits Awarded
Two
new offshore Canterbury Basin petroleum exploration permits have been
awarded in the Government's latest permit tender round.
Two
Australian explorers Tap (New Zealand) Pty Ltd and AWE New Zealand Pty
Ltd have been awarded a 6647 km2 permit (PEP 38259) in the southern section
of the basin off the Otago coast from north of Oamaru to Dunedin.
The
10,950 km2 predominantly offshore northern permit (PEP 38258), from south
of Timaru to south of Christchurch, was awarded to a consortium of Indo-Pacific
Energy (NZ) Ltd and Durum Energy (New Zealand) Ltd.
Announcing
the new permits the Associate Minister of Energy, the Hon Harry Duynhoven,
said, "The Canterbury Basin offers a real potential for a second
petroleum producing province with an existing gas/liquids market and the
potential for gas-fired electricity generation in the South Island."
Tap and AWE have proven track records of finding and bringing to development
major offshore hydrocarbon fields. Perth-based Tap (New Zealand) Pty Ltd
holds interests in six onshore Taranaki permits. Sydney-based AWE New
Zealand Pty Ltd, a wholly-owned subsidiary of Australian Worldwide Exploration
Ltd holds interests in three Taranaki petroleum permits including the
recent offshore Tui oil discovery.
Tap
and AWE's work programme provides for the reprocessing of 1500 km of existing
seismic data, reservoir characterisation and geochemical studies with
special emphasis on the Galleon South and Barque prospects. A well is
planned in the third year of the permit.
Indo-Pacific
Energy has interests in 10 New Zealand exploration permits, one of these
being the adjoining onshore Canterbury permit PEP 38256. Indo-Pacific
Energy and Tap are partners in the recent Kahili onshore Taranaki gas-condensate
discovery. Durum Energy, a subsidiary of Vancouver-based TAG Oil Ltd,
is associated with Indo-Pacific Energy in two local exploration permits,
one in onshore Canterbury and the other in offshore Taranaki.
Indo-Pacific
Energy's work programme involves the compilation and evaluation of maturation
and source rock data, the determination of a hydrocarbon charge model,
basin modelling of oil expulsion efficiencies and migration modelling,
reprocessing of 250 km of seismic data, remapping of stratigraphic and
structural traps along the Clipper drilled sub-basin, with possible acquisition
of 3D seismic data and a well drilled inside four years.
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Swift
Energy 'Fracs' Two New Kauri Wells
Swift
Energy New Zealand Ltd reports that it has successfully completed its
Kauri-E2 well into the Kauri Sandstone of its PEP 38719 permit.
Both
the Kauri-E2 and the previously drilled Kauri-E1 well have been successfully
fracture stimulated and are beginning to flow hydrocarbons to the Rimu
Production Station. Swift Energy says that following the initial well
bore clean up and stabilisation of flowing pressures, long-term production
rates will be established. Operations are also underway to fracture stimulate
the Rimu-A1 well in PMP 38151 to enhance production from the Tariki Sandstone.
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Development
Of Kupe On Track
Genesis
Power Ltd, 70% owner of the Kupe field, has selected New Plymouth-based
Transfield Worley Ltd to undertake an initial engineering study on the
development of the Kupe field.
The
purpose of the study is to:
• Review the existing concepts for the development of the Kupe central
field area and evaluate and update these for the recent advancements in
technology
• Identify the range of onshore processing, transportation and storage
options
• Identify environmental and permitting issues.
Chief
Executive of Genesis Power, Murray Jackson, said the study would enable
fast track development of the Kupe field following the appointment of
the new operator, to be announced in October. Kupe has estimated reserves
of approximately 290 PJ of gas and 16 MMbbl of liquids.
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