oi prospect

AWE, Pan Pacific Petroleum and New Zealand Oil and Gas will drill a new oil exploration well in Petroleum Mining Permit 38158 as they were unable to case a first well drilled at the site.

The new well, Oi-2, is expected to take about 48 days to drill, in 120m of water approximately 40km offshore from the Taranaki region in New Zealand.

The joint-venture (JV) will seal and abandon the first well, Oi-1, which was drilled to a depth of 1,507m in a 17.5in hole.

Installation of a 13.375in casing was not completed due to well bore instability at a shallow depth.

The second well intends to identify the hydrocarbon potential of a four-way dip closed structure similar to the producing Tui, Amokura and Pateke fields.

"The move will allow the companies to set up a drilling fluids system at a shallow depth and enhance management of conditions in the well bore."

New Zealand Oil and Gas said in order to improve conditions, 13.375in casing will be set at 550m in Oi-2 instead of 1,500m planned in Oi-1.

The move will allow the companies to set up a drilling fluids system at a shallow depth and enhance management of conditions in the well bore.

Australia-based AWE is participating in the Oi exploration wells at a reduced equity of 31.25%.

The company has the option to increase its equity participation in any future appraisal drilling and development to 57.5% by exercising the current buyback provisions.


Image: AWE is participating in the Oi exploration wells at a reduced equity of 31.25%. Photo: courtesy of New Zealand Oil and Gas.

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