Bridge Petroleum Wins Permit for Radnor Field in New Zealand

A 10-year mining permit for the Radnor onshore Taranaki gas-condensate field near Stratford has been awarded to Auckland-based operator Bridge Petroleum Ltd and Denver-based partner Westech Energy New Zealand.

The permit documents issued by Crown Minerals for Radnor PMP 38157 disclose that the initial estimated proved and probable reserves at Radnor are 20 bcf of gas and 800,000 bbls of condensate.

There is still uncertainty about the Radnor recoverable gas reserves, the permit states. This is due to low permeability of many reservoirs, limited well control and uncertainty in the long-term deliverability.

To date, the only proven reservoirs are the McKee sands in the southern block and K1C (Mangahewa Formation) sands in the northern fault block, according to the permit.

Additional wells and fracture stimulation are planned to increase the Radnor reserves. In a separate statement about the permit award, Bridge Petroleum says that consultants Malkewicz Hueni Associates (MHA) have assigned proved plus probable reserves (P50) of 53.3 PJ gas and 1,423,000 barrels of condensate for the Radnor field.

MHA have assigned proved reserves (P90) to Radnor field of 16.7 PJ gas and 521,000 barrels condensate. The Radnor 1 well is assigned reserves of 1.5 PJ and 42,000 barrels condensate.

Bridge Petroleum says no reserves have been assigned yet to the deeper Kapuni sands in Radnor equivalent to those currently being evaluated in the neighboring Cardiff 2A well.

Bridge says it plans four additional development wells into the Kapuni sands, which will be drilled annually until 2009. These have been approved by the Crown in development plan.

In addition, Bridge says it plans to drill three shallower exploratory wells in the same PMP 38157 targeting Mt Messenger and Tikorangi objectives, though timing for these wells is not yet finalized.

The Radnor-2 well, which was planned to be drilled after July this year, has now been delayed until early 2006 because of rig availability. Bridge executive director Ed Davies has said previously that Radnor-2 would be drilled 400 m deeper than the first well to about 4800 m.

The mining permit document says Radnor-2 would target the McKee reserves and is expected to double gas production from an anticipated 10 terrajoules (TJ) a day to 20 TJ a day.

The largest potential reserve base at Radnor is the K3E sands which will be evaluated through a third well or through deepening of Radnor-1 or 2 at a later stage following depletion of existing reserves.

Gas is exported through an 8-inch pipeline to join the Swift Energy pipeline. Liquids are currently trucked to the Omata tank farm at New Plymouth for export, but later these will be transported by a 4-inch pipeline to join the Swift Energy 8-inch liquids pipeline intended to the port.