The Tui area oilfields production continues to provide a solid financial basis for PPP's continuing growth ambitions which have, so far, seen new ventures developed in the Joint Petroleum Development Area between East Timor and Australia (JPDA), and activities in Vietnam.
PPP is actively considering several additional attractive opportunities in the South East Asia and Australia-New Zealand region with the aim of further expanding the exploration portfolio with quality low-medium risk prospects in proven basins, and locating one or more producing assets to provide additional production to complement the decline in Tui.
Near term focus will be on the long-awaited Tui near field exploration program which has the potential to add even more value to what has, to date, been a hugely successful project for the Company. Further details on these and other projects are summarized below.
Tui Area Oil Project (PMP 38158) Taranaki Basin (PPP interest 10%)
Production from the Tui Area oil fields totaled 1.1 million barrels (PPP 0.11 million barrels) for the March quarter, averaging 12,673 barrels a day. Cumulative field production to the end of March 2010 was 27.2 million barrels (PPP share 2.7 million barrels). Operating revenue from Tui during the quarter was US $9,680,000 (PPP share).
The Tui Area Joint Venture has selected two prospects, Tui SW and Kahu, for the forthcoming exploration drilling campaign which is now scheduled to commence by end April. Tui SW-1 will be the first well drilled, and will evaluate the Kapuni F10 Sand which is the producing reservoir in the adjacent Tui oilfield. The second well, Kahu-1, has a potentially larger target, and may also provide important information regarding the remaining prospectivity within PMP 38158. Successful discoveries would likely be developed by low-cost tie-back to the existing Tui facilities.
PEP 38483 Taranaki Basin (PPP interest 14.091%)
The Ministry of Economic Development has approved an application proposing to reschedule permit commitments, and a partial relinquishment. As a result, the decision on whether or not the JV wishes to drill an exploration well in PEP 38483 has been postponed until 8th December 2010. The Bahamas shallow gas play is being marketed as a farmout opportunity by the Operator (AWE) on
Block 07/03 Vietnam
Documentation relating to the assignment of 5% interest in Block 07/03 to PPPV under an amended farmout agreement between PPPV and Premier Oil Vietnam South B.V. has been submitted for approval by PetroVietnam to the Vietnamese Government.
JPDA 06-103 (PPPV interest 15%)
The Autoridade Nacional do Petróleo of Timor Leste, the (ANP), approved by letter dated 18th February the assignment of 15% to Pan Pacific Petroleum (JPDA 06-103) Pty Ltd (PPPJ), a wholly owned PPP subsidiary, comprising 5% interest from each of GSPC (JPDA), Global Energy Inc and Bharat PetroResources JPDA.
At the beginning of the quarter, PPP completed the drilling of its first two exploration wells in the Timor Sea JPDA 06-103 contract area, Loré-1 and Lolotoe-1, neither of which found significant hydrocarbons. Studies are now being carried out to understand these disappointing well results and the implications for prospectivity and selection of targets for future drilling. There remain several undrilled structures with the potential to host significant oil reserves.
TL/2, Carnarvon Basin, Australia (PPP interest 23.2%)
The Petroleum Production License TL/2 (R1) has been renewed for 21 years with effect from 15th April 2010. This license contains several small discoveries, including the Taunton Field, which are not currently considered commercially viable. Under the terms of the license renewal the joint venture partners will continue to evaluate the potential for the development of petroleum resources within the
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