Origin, Anadarko to explore Canterbury basin potential

Origin Energy Resources NZ has farmed out an undivided 50% interest in offshore New Zealand exploration permit PEP 38262 in the Canterbury basin to Anadarko New Zealand.

Offshore staff

SYDNEY, Australia -- Origin Energy Resources NZ has farmed out an undivided 50% interest in offshore New Zealand exploration permit PEP 38262 in the Canterbury basin to Anadarko New Zealand.

Prior to signing the agreement, Anadarko processed a 3D seismic survey recorded by Origin in 2009 over the Carrack/Caravel prospect complex in PEP 38262. The prospect is a structural closure with twin crests that covers 390 sq km (151 sq mi). Seismic data revealed the presence of amplitude anomalies that conform to structure at the level of inferred Cretaceous reservoirs. The companies also observed more localized anomalous seismic responses in the overlying Tertiary sequence, which are interpretable as gas-charged reservoirs shallower in the section.

The prospect, if established to be hydrocarbon bearing, has the potential to hold recoverable resources in excess of 500 MMboe, the companies say.

The Galleon-1 well, drilled by BP in 1985, is 30 km (19 mi) to the northwest of the prospect. The well flowed 10.6 MMcf/d of gas and 2,240 b/d associated condensate on test of Cretaceous sandstone reservoirs.

Anadarko will fund the first $30 million of joint venture exploration well drilling costs. The companies are exploring options to secure a rig for the drilling program, which is anticipated to begin in 2011.

As part of the agreement, Anadarko has an option to acquire a 50% interest in the adjoining permit PEP 38264 for $100,000.

02/25/2010

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