Offshore

Australian energy firm AWE has started drilling at the Oi-1 exploration well in petroleum mining permit 38158, offshore Taranaki, New Zealand.

The Oi-1 exploration well, which is located approximately 12km north-east of the Tui area oil fields in water depths of around 120m, will be drilled vertically to a planned total depth of 3,881m.

The company intends to identify the hydrocarbon potential of a four-way dip closed structure similar to the producing Tui, Amokura and Pateke fields, in order to target the similar F10 reservoir sandstones.

AWE said the Oi prospect, in a discovery success case, represents a best estimate prospective resource of 11 million barrels of recoverable oil.

The company is participating in the Oi-1 exploration well at a reduced equity of 31.25% and has the option to increase its interest in any future appraisal drilling and development to 57.5% by exercising the current buyback provisions.

"AWE said the Oi prospect, in a discovery success case, represents a best estimate prospective resource of 11 million barrels of recoverable oil."

Drilling at the well is anticipated to take approximately 30 days to complete and gross dry hole costs are estimated at $27m.

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AWE’s joint-venture (JV) partners in the Oi-1 exploration well are Pan Pacific Petroleum with 50% stake and New Zealand Oil & Gas with 18.75% stake.

Pan Pacific said if Oi-1 is successful, the JV partners will consider drilling a sidetrack at non-sole risk participation levels to provide further data that may assist with determination of resources and development planning.

It is expected that a commercial discovery would later be tied back to the Tui production facility, the FPSO Umuroa.


Image: The Oi-1 exploration well is located approximately 12km north-east of the Tui area oil fields in water depths of around 120m. Photo: courtesy of AWE.

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