Minority partner New Zealand Oil and Gas this morning told the New Zealand Stock Exchange that the Ocean Bounty had arrived on location over the weekend and was preparing to spud the well.
Amokura-1 will be targeting Eocene-aged Kapuni F sands 4km from last year's Tui oil discovery, with the Amokura prospect having the potential to contain up to 35 million barrels of recoverable oil. The 3700m target depth is expected to be reached just before mid-April, NZOG general manager Gordon Ward told EnergyReview.Net from Wellington today.
After Amokura, the Diamond Offshore Drilling rig is to move about 70km south to drill Pukeko-1 - a well which will be targeting stacked Kapuni C, D and F sands - from which the nearby Maui field produces. A third well is possible, depending on the results of Amokura-1 and Pukeko-1.
Also, operator Shell Todd Oil Services has confirmed what ERN first reported in January - that it would be utilising the Diamond Offshore Drilling rig while in New Zealand waters to drill a well in PEP 38482.
STOS says the Ocean Endeavour is scheduled to start a site survey tomorrow, for the Takapou-1 well, approximately 50km northwest of the Maui field.
Takapou-1 is believed to be targeting a significant closure, with possible reserves of 1.7 tcf of gas and 220 million barrels of condensate, and will fulfill a work program commitment the partners Shell NZ, Todd Energy and OMV Petroleum have with Crown Minerals.
Meanwhile, NZOG has outlined options for raising the finance necessary to develop its West Coast Pike River coal project.
Ward said issuing new shares was an option, though the company did not plan to go back to existing NZOG shareholders. It would be looking at a combination of debt and external equity or going through the IPO process.
It holds a 72% stake in the South Island field, with private investors holding the rest, and is planning a NZ$50 million development following Department of Conservation approval earlier this month of access arrangements to the coal deposits. NZOG estimates the mine may earn nearly NZ$1.5 billion in coal sales over 20 years.
Ward said Pike River and its 14% stake in the soon-to-be-developed offshore Kupe gas field would mean "substantial underpinning cashflows" for the company, which for the past 12 years had most of its revenue from the onshore Taranaki Ngatoro oil field. "We are pleased to have finally cracked these two projects."
