Todd Energy On Potential Winner At Mangahewa
March 25th, 2009
The Mangahewa gasfield, 18km south-east of New Plymouth, may be much larger than original estimates and could hold as much as 1000PJ of gas, or about the size of Pohokura, currently NZ’s largest gasfield. Todd Energy which holds the mining permit, plans to drill three wells in the next 18 months to test the theory it is, in the words of Todd Energy MD Richard Tweedie “something quite special.”
An exploration well was first drilled in Mangawhewa in 1961 by a Shell-BP-Todd joint venture. Traces of gas were found but the well was plugged and abandoned. At the time Tweedie said everyone believed the gas was “tight,” meaning the gas was difficult to extract and could not be produced easily at commercial rates. Fletcher Challenge Energy drilled a second well in the mid-1990s and permanent production began in September. Mangahewa moved into Todd Energy ownership subsequently when Shell bought Fletcher Challenge Energy and, to gain Commerce Commission clearance for the purchase, it on-sold Mangahewa and the nearby McKee field to Todd.
The Mangahewa-3 well drilled in 2007 and brought into production using modern techniques led to a reappraisal of its potential. Tweedie says if the three wells now being planned produce similar results to Mangahewa-3, “then we’re on to something pretty significant, and we’re looking at something which is potentially a Pohokura size. It would require a lot more infill drilling so we’d embark then on a pretty major drilling programme.” Another Pohokura-size field could push NZ’s P50 gas reserves out to beyond 2030. Without it, P50 reserves might be exhausted before 2022.
Copyright © Media Information Ltd
NZ Energy & Environment Business Week
Amalgamated Dairies