Transworld Moves Ahead with 3D Survey of Tui Discovery

Transworld Oil has moved quickly to undertake a 350-square kilometer 3D seismic program over its recent Tui-1 oil discovery and nearby similar structures in its PEP 38460 offshore Taranaki permit. The permit, which lies northwest of the Maui field, is operated by New Zealand Overseas Petroleum Ltd, a subsidiary of the Bermuda-registered Transworld Oil group.

New Zealand Oil & Gas Ltd exploration manager Eric Matthews, one of the PEP 34460 partners, said the venture partners have contracted the Veritas seismic survey vessel Pacific Sword to shoot the 3D seismic.

The Tui-1 well encountered a gross oil column of 10 meters within the Kapuni F sands, of which 100% was net oil pay in excellent quality reservoir rocks.

NZOG said the Pacific Sword is due to arrive in Taranaki from Singapore by mid-March and should complete its program a month later.

The main purpose of the Tui 3D seismic is to define the extent of the Kapuni F sand oil pool discovered in February, 2003. The survey will extend over several similar features nearby, and is expected to generate several targets for a drilling campaign provisionally planned for next summer.

Dr. Matthews said Tui-1 on its own looked to be a marginal discovery, but if the partners proved up further reserves by later successful appraisal drilling, then the field should prove commercial.

New Zealand Overseas Petroleum holds a 45% stake in PEP 38460. NZOG has a total 35% interest (through subsidiary Stewart Petroleum Co. Ltd's 20%, and associate Pan Pacific Petroleum NL's subsidiary WM Petroleum Ltd's 15% share) and AWE New Zealand Pty Ltd's 20%.