Indo-Pacific to Participate in Swift's Tuihu-1A Project

Indo-Pacific Energy will participate in the Tuihu-1A Drilling Project in PEP 38718, onshore Taranaki Basin, New Zealand.

Parker Drilling's Rig 246 will mobilize to the Tuihu site in mid August and the project is expected to take a month to complete. The original Tuihu-1 well was drilled to a depth of 4530m (~14,800 feet) during 2000 / early 2001, and was suspended pending further evaluation. High gas levels were recorded in fractured sands in that well.

Subsequent evaluation by (then) operator Shell showed that the main Tariki and Kapuni targets were not reached. Swift Energy assumed operatorship of PEP 38718 in 2002, and proposed the sidetrack and deepening of the well to around 5,000m (~16,500 feet) to test these deeper targets and the 'shows' observed in the fractured sands intersected at the base of Tuihu-1.

Indo-Pacific Energy has recently acquired a 10% interest (subject to government approval) in the project as a result of its previously announced purchase of the Taranaki exploration assets of Horizon Oil.

The Tuihu-1A well is situated 5km (3 miles) east of Indo-Pacific's Kahili field. The Tuihu structure is remapped by Shell as being of similar type and size to the nearby Mangahewa gas-condensate field.

If there is discovery, Swift Energy plans to link Tuihu southwards into its TAWN oil/gas treatment station and pipeline system. CEO Dave Bennett said, "We look forward to a positive and productive relationship with our joint venture partners in this high upside area." Swift Energy holds 50% of the permit, while Origin Energy and NZOG each hold 20%.