Cheal-1 production test positive in New Zealand

By OGJ editors

HOUSTON, Nov. 7 -- Indo-Pacific Energy Ltd., operator of the Cheal-1 well in the Taranaki basin—on the west coast of New Zealand's north island—initiated a successful production test of the well Oct. 20 (OGJ, Oct. 20, 2003, p. 47). Oil has flowed at an average of 70 b/d through a 5/8-in.choke to on-site production and storage facilities. The production test continued for 8-10 days, also producing natural gas at a constrained rate of 1 MMcfd.

"While this test was intended to establish Cheal as a producing gas field, we are delighted with the oil rates also being achieved," said CEO Dave Bennett. The oil is exported via truck tankers to the nearby TAWN production station under a short-term marketing agreement with Swift Energy Co.'s unit Swift Energy New Zealand Ltd, operator of that facility. Indo-Pacific, incorporated in Yukon, Canada, but based locally in Wellington, owns a 33.5% interest in Cheal-1.

The production test was designed to provide estimates of the gas volumes in the reservoir accessed by Cheal-1 so that decisions on a gas export pipeline could be made.

Indo-Pacific said several options for the pipeline were under consideration, including connections to the TAWN plant, to NGC Corp.'s regional pipeline system, or to Contact Energy Ltd.'s gas-fired power station, about 4 miles to the north.

The well now will be shut in for a week to analyze the downhole pressure gauges. If these show a critical reserve level, a similar test will be conducted immediately on Cheal-2, a well drilled east of the site in 1995 that flowed gas and oil on test from the same sands.

Taranaki basin potential
The 100,000 sq km Taranaki rift complex is partially overlain by Quaternary volcanic rocks of the Taranaki Peninsula. The basin consists of several depocenters containing as much as 9 km of Cretaceous-Cenozoic sediments (OGJ, July 16, 2001, p. 38).

Indo-Pacific plans to delineate the Cheal productive area with another well to determine the quality of the oil and gas sands and the oil potential of the underlying shallow Mount Messenger sands that form a separate reservoir target.

The Mount Messenger formation, overlain by impermeable mudstones of the Manganui formation, exhibits porosities of 14-25% and average permeabilities of 135 md. It has produced petroleum in Kaimiro and Ngatoro fields, and even the shallow sands in the Pliocene Matemateonga formation at Moturoa produce oil. Cheal-1 flows hydrocarbons from the Mio-Pliocene Urenui formation.

Indo-Pacific will drill the third well a short distance to the north of Cheal-1 in early 2004. It said production facilities were designed to handle the likely total output from all three wells.

Related Articles

Swift, Saka complete Eagle Ford development deal

07/15/2014 Swift Energy Co., Houston, completed its agreement with PT Saka Energi Indonesia to fully develop 8,300 acres of Fasken properties in the Eagle For...

Swift Energy promotes vice-presidents

12/17/2009 Swift Energy Co., Houston, has promoted Randy Bailey to vice-president of production, Steven Tomberlin to vice-president of engineering, and Barry ...

API, IPAA: Obama overlooking industry's job-creation potential

12/03/2009 The American Petroleum Institute’s two top officials expressed concern over the White House’s apparent omission from its Dec. 3 jobs fo...

IPAA advocates fact-based hydraulic fracturing study

11/06/2009 The Independent Petroleum Association of America will work to ensure that an upcoming study on hydraulic fracturing is scientific, based on facts, ...

Eagle Ford shale McMullen joint venture forms

11/02/2009 Petrohawk Energy Corp. and Swift Energy Co. will jointly explore and develop 26,000 acres of Swift Energy’s acreage in McMullen County, Tex.,...

MARKET WATCH: International economic fears boost energy prices

09/18/2008 Energy prices rebounded Sept. 17, with the front-month crude contract regaining most of the $10/bbl it had lost over the two previous trading sessi...

MARKET WATCH: Crude prices fall for fifth consecutive session

09/05/2008 Crude prices fell Sept. 4 for the fifth consecutive session as oil and gas operations in the Gulf of Mexico and along the Gulf Coast began coming b...

MARKET WATCH: Lack of oil, gas disruptions lowers energy prices

09/03/2008 Oil prices dropped to a 5-month low of $105.46/bbl in intraday trading before closing a little under $110/bbl Sept. 2 on indications of little disr...

MARKET WATCH: Lack of supply disruptions lowers energy prices

09/03/2008 Oil prices dropped to a 5-month low of $105.46/bbl in intraday trading before closing a little under $110/bbl Sept. 2 on indications of little disr...

White Papers

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

When Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST



On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected