Pan Pacific's Taranaki Production Exits December Quarter at 2.4MM Barrels
Pan Pacific Petroleum has published a quarterly activities report for the period ended December 31, 2008.
Tui Area Oil Project (PMP 38158) Taranaki Basin (PPP interest 10%)
Production from the Tui Area oil fields totaled 2.4 million barrels (PPP 0.24 million barrels) for the December quarter, averaging 26,200 barrels a day. Production was down 23% compared with the previous quarter as a consequence of increasing water production and a planned 7-day maintenance shutdown in early December. Prior to this planned shutdown, Tui Area production had been continuous for 496 days since the commencement of production in July 2007. Cumulative field production to the end of December 2008 was 19.8 million barrels (PPP share 1.98 million barrels). Field performance is currently trending above forecast.
The JV partners have agreed to defer the proposed Tui-4H development, but given the current field performance, the Operator (AWE) has advised that in its opinion there is no reason to revise the proven and probable (2P) reserve estimate of 50.1 million barrels.
The Tui Area joint venture participants have agreed to a near field exploration drilling program in 2009, subject to finalising rig availability. The JV has not yet decided which prospects will be targeted.
Hector permit (PEP 38483) (PPP interest 14.091%)
The New Zealand Ministry of Economic Development has approved the application to extend PEP 38483 for a term of 5 years from 9 December 2008. As part of the renewal work program the JV has completed a 2D seismic survey comprising over 1200 line kms.
Following the 50% compulsory relinquishment of PEP 38483, the JV submitted a PIT (Priority in Time) application for an area immediately south and contiguous with PEP 38483, comprising some 2993km2. The outcome of this application has not yet been advised.
Maitland WA-33R (PPP interest 10%)
Additional 3D seismic is currently being shot in the Maitland area by Apache, Kufpec and Santos, as part of a larger regional survey. Data over WA-33R is expected to be made available in Q3 2009, and should improve the joint venture’s understanding of the Maitland Field, and assist planning for further activities.
The Company has agreed a growth strategy focusing on new venture oil opportunities in the South East Asia, and Australia-New Zealand region, with the intention to provide exposure to oil price upside. The primary objective in the near term is to locate one or more producing assets to provide additional production to complement Tui, which is declining. PPP is also committed to developing a balanced exploration portfolio in proven basins, with a priority on low-medium, rather than high risk prospects, tending to limit high risk exposure whilst building a core portfolio.
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