AWE kicks off development drilling on Tui

AWE Ltd. has begun its development drilling program for the Tui Area with the first well in the program, Pateke-3H.

Offshore staff

SYDNEY, Australia -- AWE Ltd. has begun its development drilling program for the Tui Area with the first well in the program, Pateke-3H.

The Tui Area drilling campaign is being undertaken on a "batch-drilling" basis, to optimize the sequencing of drilling operations and the connection of flowlines to the subsea development wells. Batch drilling will involve drilling the upper sections and installing subsea wellheads and trees on at least three of the planned four wells prior to drilling the deeper sections of the wells, including the horizontal sections within the oil reservoirs.

Following the cementing of the surface casing and the installation of the subsea tree, the Pateke-3H well will be temporarily suspended, and the drilling rig will be relocated to allow similar activities to be completed on the Tui-2H and Tui-3H wells. Plans are for Tui-2H to be the first well drilled to total depth and completed for hook-up to the production facilities.

The Tui Area development is in PMP 38158, in the Taranaki basin, 50 km (31 mi) off the west coast of the North Island of New Zealand. First oil is expected by June 30, 2007. When fully commissioned, AWE expects peak production to reach 50,000 b/d of oil.

12/21/2006

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