New Zealand Oil & Gas Logs Pay with Tui-1 Well

New Zealand Oil & Gas announces that the Tui-1 well in PEP38460 has made a small oil field discovery, in the F Sands. The well has reached its total depth of 3,903 meters and is currently running wireline logs. Upon completion of wireline logging, the well will be plugged and abandoned as planned. As previously reported, the primary objective of the well, the Kapuni D Sands, was encountered slightly high to prediction but was associated with only minor oil shows and low levels of cuttings gas. Subsequent wireline logging has confirmed that no producible hydrocarbons are present in this interval. When the Kapuni F Sands were encountered at 3,655 meters, elevated cuttings-gas and hydrocarbon fluorescence were observed over the uppermost 20 meters of the sand. These observations were interpreted to indicate gas. Subsequent evaluation of the wireline data, including MDT fluid sampling, has indicated a gross oil column of 10 meters, of which 100% is net oil pay in excellent quality reservoir rocks.

The discovery is currently believed to be a small oil field with the possibility of increased size with further appraisal drilling. The PEP38460 joint venture is considering immediate acquisition of 3D seismic over the field to identify possible appraisal drilling locations. NZOG considers that the discovery of oil at Tui is positive, not only for itself if appraisal is successful, but also because the presence of oil rather than gas has upgraded the other prospects of the block.

NZOG holds a 20% interest in PEP38460 which is located in the Taranaki Basin approximately 20 kilometers northwest of Maui Field.