Australia's AWE, PPP, NZOG To Drill 2nd Oil Well Off NZ Coast

Reuters

WELLINGTON, June 10 (Reuters) - Australia's AWE Limited, Pan Pacific Petroleum and New Zealand Oil and Gas Ltd will drill a $40 million oil exploration well off the coast of New Zealand after they were unable to case a first well drilled at the site, NZ Oil and Gas said on Tuesday.

NZ Oil and Gas said in a statement that the new well would take up to 48 days to drill at the Oi prospect, in 120 meters of water about 40 kilometres offshore from the Taranaki region on New Zealand's North Island.

The joint venture would seal and abandon the first well, which was drilled to around 1,500 metres, the company said, adding that the new well would be drilled to a target depth of 3,881 metres.

AWE has given a pre-drill, un-risked best estimate prospective resource of 11 million barrels of recoverable oil. NZ Oil and Gas said it considered that the well had a 17 percent geological chance of success, and a 16 percent chance of commercial development.

Pan Pacific Petroleum holds a 50 percent share of the joint venture. AWE has a 31.25 percent stake, with NZ Oil and Gas holding the remaining share through a subsidiary.

In the event of a commercial discovery at the Oi prospect, Pan Pacific Petroleum said, the field may connect to and use spare capacity at the nearby Tui oil field, another joint venture project operated by the three companies.

New Zealand's Taranaki region is an oil and gas producing basin, where companies including Royal Dutch Shell, Austria's OMV and New Zealand's Todd Energy also have joint ventures to operate a handful of offshore fields.

(Reporting by Naomi Tajitsu)

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Directional Driller - South Texas
Expertise: Driller
Location: San Antonio, TX
 
Floorhand
Expertise: Floorhand / Roughneck|Roustabout
Location: Grand Junction, CO
 
Remote Paramedic w/ Clerking Experience
Expertise: Paramedic / Nurse|Rig File Clerk|Safety Officer
Location: GOM, TX
 
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours