By OGJ editors
HOUSTON, Apr. 11 -- Australian Worldwide Exploration Ltd., Sydney, said it may participate in as many as five high-impact exploration wells off the New Zealand north island in the next 12 months.
The company's New Zealand affiliate is already a participant in the development of Tui, Amokura, and Pateke fields in the Taranaki basin in a group led by New Zealand Overseas Petroleum Ltd., a subsidiary of Transworld Exploration & Production Inc., Houston.
First production from those fields is set for late 2006 (OGJ Online, Oct. 29, 2004). Those fields are 20-25 km northwest of Maui gas field, which is in 106 m of water in the Tasman Sea.
AWE's latest foray involves a commitment to fund Shell Exploration NZ Ltd.'s 60% share of the cost of 300 line-km 2D seismic survey on PEP 38481 and 38482 in return for a 10% interest in the two permits. Other participants in the two permits before AWE's earned interest are OMV New Zealand Ltd. 25% and Todd Petroleum Mining Co. Ltd. 15%.
AWE, after the seismic data are acquired and interpreted, has an option to fund Shell's remaining 50% interest in an exploration well on one of the two permits to earn a further 30% in both permits. AWE must make the election by December.
The seismic commitment and drilling option are subject to joint venture and government approvals.
Exploration outlook
PEPs 38481 and 38482, totaling 4,282 sq km, are prospective for oil and gas in the lower part of the Paleocene Kapuni Group, including the Kapuni F sandstone reservoir.
Nearby Maui field has produced more than 200 million bbl of oil and condensate, with the oil being produced mainly from the Kapuni F sand, AWE pointed out. The three Tui Area discoveries are pegged to recover at least 20-30 million bbl of proved and probable oil from the same interval.
AWE in late March began acquiring 80 sq km of 3D seismic data to assist in defining the extent of the Pateke oil discovery. A second stage program there involves acquisition of 420 sq km of 3D data over the Hector prospect area on PEP 38483.
AWE is operating both surveys on behalf of the PEP 38460 and 38483 joint ventures and was to complete acquisition by the end of April. PEP 38483 extends as far as 200 km off the west coast of the north island.
The joint venture received government approval for the relinquishment of part of PEP 38460 over the Hector area and for the extension of PEP 38483 over the same area.
AWE said the Hector area is considered highly prospective due to a combination of favorable reservoir development in the Kapuni F sand and its prime location for oil charge from the adjacent Kahurangi Trough.
PEP 38483 interests are AWE as operator 44.317%, Mitsui E&P New Zealand Ltd. 22.728%, New Zealand Oil & Gas Ltd.'s Steward Petroleum Co. Ltd. unit 18.864%, and Pan Pacific Petroleum NL's WM Petroleum Ltd. unit 14.091%.
PEP 38460 interests are NZOG as operator 45%, AWE 20%, Mitsui and Stewart 12.5% each, and WM Petroleum 10%.
