NZ Oil & Gas Outlines 'Batch-Drilling' Progress of Kupe Wells

New Zealand Oil & Gas Ltd advises that on March 12, the 8-1/2 inch drilling assembly was being run in to drill out the 9-5/8 inch casing shoe-track on Kupe South 8 (KS-8).

Over the last week, drilling of the 8-1/2 inch section of the Kupe South 6 (KS-6) well reached the planned total depth of 3,385m MDRT (measured depth from rotary table); reservoir evaluation logs were completed; the 5 inch liner set and cemented; and the well suspended. Drilling began at 22:40 hours on 19 December 2007.

The Kupe Project drilling campaign is being undertaken on a "batch-drilling" basis. This process involves completing the same section of each of the three wells before proceeding to the subsequent section and is a more efficient approach than drilling the wells separately.

The Kupe Project is located within permit PML38146 in the offshore Taranaki Basin, New Zealand, approximately 30km off the coast. The development will comprise production wells tied into an unmanned offshore platform, a 30 km pipeline to shore, and an onshore processing station. The Kupe Project is expected to be completed by mid-2009 and produce approximately 254 petajoules of natural gas, 1.1 million tonnes of LPG and 14.7 million barrels of light oil (condensate).