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

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

BHI: US oil rig count rises for first time in 30 weeks

07/02/2015 A sudden 12-unit jump in oil-directed rigs during the abbreviated week ended July 2 represented their first rise since Dec. 5, 2014, and helped lif...

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

BHP, Woodside move to decommission Stybarrow field

07/01/2015 BHP Billiton Ltd. and Woodside Petroleum Ltd. have started preparations for decommissioning of the Stybarrow group of oil fields in production lice...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

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