OMV Yet to Find Significant Oil, Gas Shows at Matuku-1 Well in PEP 51906

Octanex N.L., an Australia-based exploration company, reported Thursday that it has been advised by OMV New Zealand Limited, the Operator of the Matuku-1 exploration well being drilled in the offshore Taranaki Basin permit PEP 51906, that at 06:00 hours (NZST) Thursday, Jan. 16, the well was at a depth of 14,130 feet (4,307 meters) MDRT (measured depth below rotary table) and drilling ahead in the 8.5 inch hole.

Since the weekly progress report was released Jan 14, the 8.5 inch hole has penetrated the upper section of the Pakawau Group North Cape Formation (K90) sandstones. These sandstones were found to be less porous than the Kapuni Group Farewell Formation F Sands (T10 sands) encountered above the K90 sands. As with the T10 sands, the K90 sands were water bearing and there was no significant gas or oil shows.

On-going operations are to drill ahead to the programmed total depth of  15,583 feet (4,750 meters) and then plug and abandon the well as planned.

Matuku-1 is a vertical well that is being drilled by the Kan Tan IV (mid-water semisub) in water depths of 426 feet (130 meters).

The company's wholly-owned subsidiary, Octanex NZ Limited, holds 25 percent participating interest in PEP 51906 and this interest is being free carried by OMV through the drilling of Matuku-1 well.

The participants in the PEP 51906 permit and its Joint Venture are:

• OMV New Zealand Limited - 65 percent
• Octanex NZ Limited - 22.5 percent
• Australia and New Zealand Petroleum Limited (subsidiary of New Zealand Oil & Gas Ltd) - 12.5 percent