Westech Finds Oil & Gas at Surrey-1

Westech Energy New Zealand has announced an oil and gas discovery at its Surrey-1 well in onshore Taranaki licence PEP 38734. The company also says it will drill the Surrey-2 appraisal well soon and aims to bring the Surrey and nearby Windsor wells in PEP 38732 into commercial production shortly.

Westech Energy NZ, which holds a 100% interest in both permits, completed the Surrey-1 well as an oil and gas producer from the shallow Miocene-aged Mount Messenger sands. The well was drilled to a total depth of 1935m and a gross reservoir of 25m, from 1610m-1635m, was found to contain an 11m net hydrocarbon column near the top of the zone.

A confirmatory production test, from 1615m-1618m, flowed at a rate of 116 barrels of (30 degree API) oil and 1.26 million cubic feet of gas per day with no water. This was on a 1/4 inch choke and at a flowing tubing pressure of 1240 psi.

The gas was composed of 97.1% methane and 2.16% ethane and higher hydrocarbons, with no hydrogen sulphide and negligible carbon dioxide.

Company president Ed Davies said from Denver that Westech was very pleased to have struck hydrocarbons again in another of its onshore Taranaki licenses. Westech hoped to repeat its 2000 success, when two of three Windsor wells drilled in the adjoining PEP 38732, resulted in commercial gas flows. The company did not release detailed flow rates at that time.

Mr. Davies said he expected the Surrey-1 well to be placed on production shortly, following an agreement on a gas sales contract. The perforated interval would be expanded prior to production and it was anticipated that the Windsor-1 and 3 gas wells, located 8 km north of Surrey, would be produced under the same gas contract.

The Surrey- 2 appraisal well was to be drilled 1.2 km south of Surrey-1 as soon as Westech NZ could obtain the necessary resource consents.

Westech downstream operations director Kevin Johnson said from Auckland that no gas sales contracts had yet been finalized but the company would discuss sales contracts with any interested party.