Operator Indo-Pacific Energy announced today that Kahili-1B had now been cased in preparation for flow testing of three zones within the targeted Kahili structure. The Tariki sandstones had been intersected from 9268 ft to 9908 ft. Over 70% of the geological section was sandstones, which had exhibited elevated levels of hydrocarbon gases during drilling.

Electric logging had confirmed the presence of movable hydrocarbons, consisting of either light, gassy oil or condensate-rich gas throughout the entire interval.

The 115 ft interval of sands above 9383 ft more clearly exhibited a movable hydrocarbon presence than the sands beneath. Logging had also indicated that the crest of the trap lay to north of Kahili-1B.

Company chief executive Dave Bennett said from Wellington that the deepest package of sandstones, between 9780-9845 ft, would be tested first and perforated on Wednesday. However, first flow results would probably not be available before next Monday. Based on the results of this test, two shallower similar sandstone packages might be tested before flowing the uppermost sands.

Aussie partner Tap Oil estimates potential recoverable volumes at Kahili could be of around 14 mmbbls of oil and 18 bcf of gas. Earlier this year the Kahili-1 well encountered a 58.5 metre gross oil column and a four-hour drill stem test recovered a small amount of oil.