New Zealand offshore exploration quickens

A significant oil find by Shell Todd Oil Services and the licensing of a block between New Zealand's North and South Islands highlight current exploration activities in the country's offshore areas.

Shell Todd and partner Cultus Petroleum NL, Sydney, have completed evaluation of the Maari 1 well, the initial results of which were announced in mid-November (OGJ, Nov. 30, 1998, p. 34). The well, in the Taranaki basin, cut 56 m of net oil-bearing sands in three formations.

CVL Resources Ltd.'s Australian unit Tyers Investments Pty. Ltd., in a 50-50 joint venture with affiliate Tyers Petroleum, acquired New Zealand Petroleum Exploration Permit (PEP) 38338, covering 4,008.7 sq km, mostly offshore, between the North and South Islands.

Offshore oil find

New Zealand's Crown Minerals department announced additions details on the Maari 1 oil discovery, operated by a joint venture of Shell (Petroleum Mining) Co. Ltd. and Todd Petroleum Mining Co. Ltd.

The well was drilled on PEP 38413 off Taranaki, New Zealand, about 38 km south of the Maui B platform. It found oil pay in the Miocene Moki and two other formations.

Maari 1 is only 800 m west of the Moki 1 discovery well, deemed subcommercial after it was drilled 20 years ago, despite "good oil shows," according to Crown Minerals.

Shell Todd targeted three zones with Maari 1-the Moki, the Eocene Kapuni group, and another Miocene formation that Cultus calls the M2A. The partners used wire line log analyses to identify a total of 56 m net oil-bearing sands in the three zones.

In the Moki, a total of 36.4 m of log-derived net oil pay was discovered in two sands. The main oil-bearing interval was at a depth of 1,290-1,334 m.

The Kapuni group showed 8.4 m of net gas pay and 13.5 m of log-derived net oil pay, while the M2A showed 6.1 m of log-derived net oil pay in two sands.

The operator is plugging the 2,200 m vertical well and preparing to drill a horizontal leg of up to 500 m into the Moki to test sustainable production flow rates in the formation. Cultus was expecting this well to be completed by mid-December. Operator Shell Todd estimates flows will be at least 2,000 b/d of oil. Shell Todd has invested 100% of the cost of the vertical Maari 1 well in exchange for a combined 50% participating interest in the permit. When drilling is complete, the project's interests will be Cultus 50%, Shell 35%, and Todd 15%.

Tyers block

Tyers Investments and Tyers Petroleum acquired PEP 38338 in New Zealand's little-explored East Coast basin (see map, this page). Two discoveries were made recently in the basin by Enerco New Zealand Ltd., Auckland, and Westech Energy Corp., Denver (OGJ, May 11, 1998, p. 46; OGJ, May 18, 1998, p. 78; OGJ, July 6, 1998, p. 42).

Under terms of the Tyers companies' 5-year permit on 38338, the partners must:

Review current geological and geophysical data, reprocess existing seismic data within the permit area, and perform an onshore gravity survey over previously identified, untested leads and prospects within the first 12 months.
Acquire, process, and interpret at least 150 km of seismic data, including 15 km in the offshore portion of the permit, within 24 months.
Drill an exploration well within 36 months.
Pay New Zealand a royalty of 5% of the net sales revenues from PEP 38338.

CVL also owns 30% interest in a joint venture with GEL Exploration Inc. on PEP 38331, covering a 407 sq m area in the East Coast basin. The partners shot a regional seismic survey on this permit and plan to shoot some infill seismic.