NZOG looking to drill Kaupokonui

Offshore staff

WELLINGTON, New Zealand -- New Zealand Oil & Gas (NZOG) is looking for a rig to drill a well next year on the Kaupokonui oil prospect in the offshore Taranaki basin.

NZOG has a farm-out agreement with Peak Oil & Gas (since merged with ASX-listed Raisama), under which Peak will earn a 10% interest in the surrounding PEP 51311 permit by contributing 20% of the $15-million cost of the Kaupokonui-1 well.

Kaupokonui comprises several vertically stacked potential reservoir sands with un-risked recoverable oil resources of over 200 MMbbl. Recent seismic modeling has identified a potential small gas cap on the main postulated oil column, and other prospects have been identified within the permit.

Elsewhere off New Zealand, NZOG has a 12.5% interest in PMP 38158 (Tui), containing the producing Tui area oil fields and other undrilled prospects and leads, led by Oi and Tieke North.

The 3D seismic data covering most of the permit area has been reprocessed, including pre-stack depth migration. Current reservoir modeling is intended to establish the scope for any further development drilling within the producing Tui, Amokura, and Pateke fields.

PML 38146, in which NZOG has a 15% interest, contains the producing Kupe Central field area and other prospects and leads. Current geological and geophysical assessments could lead to one or more prospects being drilled in conjunction with scheduled second-stage development drilling in 2012/13.

In northern offshore Taranaki basin permit PEP 51558 (Parihaka), NZOG and Todd Energy have both increased their stakes to 50%, with Todd taking on operatorship. Subject to approval for a change to the work program, a large 3D seismic survey acquired in 2007 will be processed to improve definition of deep targets within the Kapuni sandstones. These have proven effective reservoirs in the northern part of onshore Taranaki.

In offshore Canterbury basin permit PEP 38259 (Barque), NZOG has a 40% interest and is set to assume operatorship from AWE. The concession contains the large Barque gas-condensate prospect and a lead identified by NZOG which extends across the permit boundary into the Clipper permit. The partners will evaluate the cost of drilling and developing the prospect and will investigate availability of a suitable rig.

05/02/2011