Indo-Pacific Sees Improvement on Second Kahili Flow Test

Indo-Pacific Energy Ltd. reports the second flow test of Kahili-1A/B gas condensate discovery was conducted between April 26 and May 4 and flow rates improved by 40% over the original test results. The Kahili well is located in New Zealand's Taranaki Basin, PEP38736

The static pressures in the well at the start of this test indicated that a further significant upgrade of reserves is justified. The production zone was extended by perforating an additional 15 feet of pay, with further improvement in flow rate, flowing pressure and better condensate (light oil) to gas ratios. Downhole sampling for analytical purposes was successful, and pressure gauges will remain down the well until independent reserves have been assessed. A total of 1236 barrels of oil was produced and sold during the test. Two main competing proposals to construct a pipeline and take Kahili gas, LPG's and condensates are being evaluated. Other development options have not been excluded, and a decision is targeted for June; with first production around end 2003.