Indo-Pacific Begins Flow Tests at Cheal-1 Well

Indo-Pacific Energy has commenced initial flow tests of the Cheal-1 well in PEP38738, onshore Taranaki Basin in New Zealand. The well commenced flowing at a rate of 4.5 million cubic feet of gas per day through a 32/64 inch choke, at a surface flowing pressure of 750 psi. As the test progressed, an increasing amount of oil in the gas stream was indicated by change in color and smokiness of the flare, and a gradual decline in gas rate due to the heavier well stream. Oil rates cannot be calculated until test separation equipment is available in a few weeks time.

The test interval includes the oil and gas sands originally flow tested in Cheal-1 in the mid 90's, plus an additional gas sandstone about 50 feet higher in the well. Chief Executive David Bennett said, "We are very pleased with these initial flow rates, which are more than twice those recorded when the well was originally tested. This is due to our improved completion technology as well as the additional gas pay sands. The extended production test in a few weeks time will allow us to make estimates of gas reserves and long term oil and gas production rates, hence assess the best means of developing the reserve." Cheal-1 and Cheal-2 wells are situated on the same site, less than four miles across easy terrain from pipeline tie-in points. Testing of Cheal-2 and the drilling of a Cheal-3 well higher on the structure are under consideration. Following verification of commercially viable reserves it is expected that pipeline connection and gas market will be readily achieved, so that the field can be in production early next year.