Partners in the Maari joint venture are buoyed by successfully reaching all the objectives in the drilling operations 80km off south Taranaki, with oil being struck in 3 different “plays” (Moki, M2A, and Mangahewa sandstones) on 2 separate structures (Maari and Manaia). A success rate of 100% in a drilling programme is unusual in oil exploration, and has stirred fresh optimism other drilling campaigns planned off Taranaki for the summer will add substantially to the country’s oil reserves. The $500m investment in developing Maari could yield the partners over $10bn gross over the life of the various reservoirs. For the nation, it comes on top of the $4 to $5bn gross the Tui field off New Plymouth might yield during its life. Other big pay-offs are coming from the Pohokura gas/condensate field, and the soon to be commissioned $1bn Kupe gas/condensate project, also off Taranaki.

Operator of the Maari field, OMV NZ Ltd, announced last week the Manaia field located 10km southwest of the producing Maari field will proceed to commercial oil production after the success of an appraisal well. OMV NZ managing director Wayne Kirk, says “it’s the icing on the Maari cake. The extra production from the two fields will add to the sizeable benefits the development is already providing the NZ economy.”

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Kirk says the results of the Manaia-1 appraisal well “give us cause for optimism so we are pressing ahead with preparations to begin production as soon as possible. This is a very pleasing result given the challenging nature of the drilling we had to undertake.” Drilled as an extended reach well from the Maari wellhead platform, the Manaia well stretches 8km, or 8 times the length of the Auckland harbour bridge. Kirk calls it the equivalent of drilling down from Wellington airport and aiming for an area the size of a set of goal posts 2km below the Westpac stadium in central Wellington.

Bob Coppin, CEO of Cue Energy, which has a 5% stake in the Maari project, says the efficient drilling operations to date have been “very pleasing.” Maari, which began production in February has 5 oil production and 3 water injection wells in the Moki reservoir and the processing facilities are close to capacity at around 39,000 barrels a day. The Moki reservoir is expected to yield at least 50mmbbls over a 10-to-15 year period.

The second “play,” the M2A sandstone, lies about 50 metres above the Moki reservoir, and the appraisal well drilled a 1209 metre horizontal section through the reservoir, with a net oil pay of 660 metres. Technical assessment is on-going, but the most likely oil-in-place volumes are in the range of 30-40mmbbls. Coppin says “Recoverable volumes will be estimated in due course, but it is clear the M2A reservoir will increase Cue’s proven oil reserves.”

Talking of the Manaia discovery, Coppin says the primary target was the Mangahewa sandstone which underlies the M2A and Moki sandstones. “A gross Mangahewa reservoir section of 1524m was penetrated with an approximate net-to-gross of 60-70%. Logging-while-drilling tools plus gas-ratio analyses confirm the presence of hydrocarbons throughout the Mangahewa reservoir section. Although no further assessment of reserves have taken place, previous volumetric assessments indicate most likely oil-in-place of about 58M barrels. The Manaia field will be tied back into the Maari production facilities and production will begin over the next months. Manaia’s oil increases Cue’s proven oil reserves and is expected to add life to the Maari project.”

Coppin says the continued success in the Maari and Manaia fields indicates there are substantial near-field exploration/appraisal opportunities in the company’s NZ permits. “Not only have we added reserves but we have also gained significant technical data from the drilling campaign which assists our forward plans. We recognise there is also unrealised potential at the Mangahewa reservoir level at Maari and at the Moki levels of Manaia. We expect the joint venture will focus on the technical merits of each of these with the intention of further appraisal drilling in the future.”

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