Ambitious Programme For NZ Explorer
September 23rd, 2009
Listed NZ Oil and Gas is outlaying about $40m in an ambitious exploration programme this summer, participating in offshore wells to be drilled by two different rigs. The company, which reported a profit of $53.2m for the June year largely because of its share in the Tui oil field’s production, has taken a 40% stake in permit PEP38491 in the northern Taranaki Basin, where the Ensco 107 jack-up rig may next month begin drilling the Albacore-1 exploration well.
Estimated to cost $20-$25m, the well contains 3 separate target zones which may contain hydrocarbons. Analysts say the fact NZOG took as big a stake in 40% underlines its confidence the target zones are “highly prospective”. By comparison NZOG has only 12.5% of Tui, and 15% of the $1bn Kupe gas/condensate development, which is expected to be fully commissioned early next year.
Besides the Albacore exploration, NZOG will also be participating in the drilling of the Hoki-1 well and two additional wells in the Tui field, by the semi-submersible rig Kan Tan 1V which is being brought to NZ waters by Australian Worldwide Exploration, the operator of the Tui project. The Ensco 107 rig is at present drilling the M2A well on the Maari project in south Taranaki which is projected to take 27 days, after which it has to complete the Manaia-1 well, before being released for the Albacore consortium headed by US-based Westech, a wholly owned subsidiary of Energy Corporation of America.
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