Swift Plans Deep Well on Kauri Field

Swift Energy New Zealand has brought forward plans to further explore the Kauri oil field within its onshore Taranaki license PEP 38719. Company executive vice-president Bruce Vincent said Swift Energy would now spud the Kauri-A4 deep exploration well in early June instead of later in the year.

The primary target horizons of the Kauri-A4 well will be the Kauri and Lower Tariki sands, with a secondary objective of the deeper Kapuni group. Drilling is expected to take up to 90 days and the rig will then move to Rimu where it will drill an additional development well targeting the upper Tariki sands.

Shell New Zealand has elected not to join Swift Energy in the onshore Taranaki license PEP38719. Shell New Zealand chairman Lloyd Taylor said Shell had chosen not to exercise its option negotiated when it sold the Tariki, Ahuroa, Waihapa and Ngaere (TAWN) mining licenses and production facilities to Swift for about US $54.4 million late last year. Mr. Vincent said from Houston that Swift Energy had already been approached by other firms which were interested in this project. “We have engaged in discussions with them regarding their potential participation and we hope to bring in a partner for a 25% interest by the end of this year,” he said.

Shell New Zealand, through Shell (Petroleum Mining) Co. Ltd, has a 50% interest (the other 50% stake is held by Todd Petroleum Mining Co. Ltd) in the offshore Kaheru prospect in PEP 38737 which surrounds the offshore section of the Swift PEP 38719 block. The operator for PEP 38737 is Shell Todd Oil Services Ltd, which is currently evaluating the Kaheru prospect.