Austral May Drill Another Supplejack Well After Gas Discovery

Austral Pacific Energy Ltd says it may drill a second well at its Supplejack prospect, in PEP 38741 in onshore Taranaki, after remapping indicates the Supplejack-1 well may have hit the edge of a trap.

Flow testing of the 3 m sandstone unit near 1,950 m drilled depth Supplejack-1 well produced gas at a maximum rate of approximately 640,000 cubic feet per day with associated intermittent condensate and no observed formation water.

Remapping of the 3D seismic data covering the area indicates that the well may have intersected the edge of a trap with possible extent of one sq km within which the seismic response indicates the reservoir sandstones might thicken, to contain a viable oil or gas accumulation.

Further testing of this zone and a second well to intersect the target reservoir at an optimal location, are under consideration.

Testing of the shallower gas pay at 1,300 m is subject to review of gas development options. A gas collector pipeline with available capacity lies 2.5 km east of the wellsite. Onsite electricity generation is another option under review.

Operator Austral Pacific Energy holds a 30% interest in PEP 38741, Perth-based Tap (New Zealand) Pty Ltd holds 50%, and Calgary-based TAG Oil (NZ) Ltd holds 20%.

Austral Pacific also says production has now resumed on the Cheal-A4 oil well in the shallow zone of PEP 38738, in order to bring the well back into stable production for linkage to the 1 MW gas engine generation unit, which is scheduled to be commissioned in early October. Electricity surplus to site needs will be sold into the local transmission system.