Kan Tan IV Commences Drilling at Oi-1 Well Offshore Taranaki
AWE Limited, as Operator of Petroleum Mining Permit 38158 offshore Taranaki, New Zealand, reported Monday that the Kan Tan IV (mid-water semisubmersible) commenced drilling the Oi-1 exploration well at 18:30 hours (6.30pm) NZDT on Friday, May 30. The Oi-1 exploration well is located approximately 7.45 miles (12 kilometers) northeast of the Tui Area Oil Fields in water depth of approximately 393 feet (120 meters).
As at 06:00 hours (6.00am) NZDT today, operations had run and cemented 30 inch casing to 751 feet (229 meters) and was drilling ahead in a 17.5 inch hole at a depth of 1,673 feet (510 meters).
The Oi-1 exploration well will be drilled vertically to a planned total depth of 12,732 feet (3,881 meters). The well objective is to evaluate the hydrocarbon potential of a 4-way dip closed structure similar to the producing Tui, Amokura and Pateke fields and it will target the same F10 reservoir sandstones.
The Oi prospect, in a discovery success case, represents a best estimate Prospective Resource of 11 million barrels of recoverable oil (gross, unrisked P50 estimate). AWE is participating in the Oi-1 exploration well at a reduced equity of 31.25 percent and has the option to increase its equity participation in any future appraisal drilling and development to 57.5 percent by exercising existing buyback provisions.
Gross dry hole drilling costs are estimated at $27 million (net $8.4 million to AWE at 31.25 percent) and the well is expected to take approximately 30 days to complete.
In the event of a commercial discovery, it is envisaged that any subsequent development of the Oi field would involve a tie back to the nearby Tui production facility, the FPSO “Umuroa”, where sufficient production capacity is available.
The Joint Venture partners in PMP 38158 are:
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