Recent discoveries of oil, condensate, and gas could have a profoundly positive effect on New Zealand's energy picture.
With the country's crude and condensate reserves standing at a little more than 100 million bbl, a recent Taranaki basin discovery by Swift Energy Corp., Houston, could hike reserves 20% by itself, noted the Ministry of Economic Development.
Swift Energy's estimate for Rimu field alone is 20-100 million bbl of oil equivalent. If these estimates prove accurate Rimu alone would increase the modest national reserves by at least 20%.
Swift has also estimated that the nearby Kauri prospect could contain 200-500 MMboe and the Tawa prospect 100-300 MMboe. If even the minimum targets are achieved this would mean a large expansion of New Zealand's oil reserves, ministry sources said.
The onshore wells are located close to gas and oil infrastructure.
New Zealand's production averages about 20,000 b/d of crude oil and a slightly larger volume of condensate.
Other contributors
Several other discoveries are awaiting development in Taranaki, New Zealand's only producing basin, and gas discoveries have been made on the east coast of the North Island.
Also, operator Fletcher Challenge Energy Ltd. announced that its Taranaki offshore well Pohokura-1 had discovered gas and was flowing 17 MMcfd and more than 1,000 b/d of condensate from Kapuni group sands. The well, being drilled by a jackup 5 km from shore, is on a structure estimated prior to drilling to be capable of containing about 500 MMcf of gas.
Fletcher and partners were considering a second well offshore. They could deviate four wells from shore to develop the accumulation. Pokohura-1 is in 25 m of water about 5 km offshore from the Methanex Corp. Motunui methanol plant.
Two other Taranaki offshore oil fields, Maari and Kupe, are awaiting development. Maari is still subject to appraisal and is thought to hold 20-60 million bbl of recoverable oil. The estimate for Kupe is 264 bcf of gas and 16.3 million bbl of condensate.
In the East Coast basin the Westech-Orion joint venture has announced three gas discoveries near Wairoa-Kauhauroa, Awatere, and Tuhara. A second land well near shore is planned in mid-2000 at Tuhara, an onshore-offshore prospect. The joint venture detected 12 prospects each covering 20-90 sq km as the result of a 600 sq km 3D seismic survey in Hawke Bay.