In its June 2003 report the Sydney-headquartered NZOG outlined progress made on preliminary development options and gas sales in the offshore Taranaki Kupe field, plans to re-enter the Tuihu- 1 well in onshore Taranaki licence PEP 38718 late this month; boost flagging production at the Ngatoro oil field by a water injection program; and further evaluate its small offshore Tui oil discovery.

The initial engineering study to refine the preferred development concept for the central area of the Kupe mining permit PML 38146 would be contracted this month, said NZOG, and would take four months to complete.

NZOG said it was in discussions for the sale of NZOG's share of Kupe reserves (19% interest), estimated at about 43 petajoules of gas and three million barrels of oil.

Re-entry of the Tuihu well with its two potential Tariki and Kapuni Formation 50PJ gas objectives was planned for late August. The Tuihu wellsite was only six kilometres from the Tariki gas pipeline and could, if successful, be brought into production within a matter of months.

NZOG also said it had identified several prospects at the Kapuni D and F sands levels in addition to the F sand pool at Tui from initial evaluation of the 350 sqkm of 3D seismic shot during April and May in PEP38460. Prospects needed to be firmed up before any decisions would be made.

NZOG also said it was in the process of taking a majority position in, and operatorship of, onshore Taranaki licence PEP38728.