Indo-Pacific Energy Plans to Drill 10 Wells in Two Years

Indo-Pacific Energy plans to drill up to 10 wells during the next two years, the company says in information related to its current $NZ8 million share float.

The company expects to include at least four wells in the first year and up to six wells in year two. Funds from the share offering will also help develop the Kahili and Cheal discoveries.

A Kahili-2 production well is planned next year for PEP 38736 in New Zealand, as well as two exploration wells to test prospects in PEP 38748, following the Kaimata 3D seismic survey over the entire permit in early 2003.

Among other wells planned is one in PEP 38716 and another in PEP 38741.

Indo-Pacific says the deep gas potential of onshore Taranaki basin remains under-explored because of the historically low gas market prices. However, the current strong market demand and rising market prices for new gas provides a stimulus to deep gas drilling.

The company holds permit rights over Cardiff, Waitoriki, Onaero North and Akama deep gas targets in its onshore Taranaki permits, and the Orca Prospect in its offshore Taranaki permit.

Subject to third party participation, the company intends to pursue the drilling of these targets in the next two years.

A Cardiff-2 appraisal well in (PEP 38738), located adjacent to Cardiff-1 where gas flowed in 1991 from the Kapuni sandstones, is planned for 2004.