DRILLING

Kahili tests well

Indo-Pacific Energy has announced the encouraging results of the second production test of the Ka...

Company chief executive Dave Bennett told EnergyReview.Net he was very pleased with the latest Kahili test results, which saw initial flow rates of up to 5MMSCF/D of gas increase by some 40%.

Initial testing late last year was over the top 15 metres of a 36.5m upper Tariki sandstones interval. The latest test, which finished on May 4, was over an additional 4.5m of paydirt and static pressures in the well at the start of the test indicated that "a further significant upgrade of reserves" was justified, said Bennett.

He declined to specify what those new reserves estimates might be, though Aussie partner Tap Oil has said it believes recoverable reserves from just the one Kahili well could be as much as 7 Petajoules of gas and 200,000 barrels of condensate.

As well as better gas rates and flow pressures, Bennett said there were also better gas-to-condensate ratios, exceeding the initial ratio of up to 40 barrels per million standard cubic feet of gas. A total of 1236 barrels of condensate was produced and sold during the test.

Downhole sampling for analytical purposes was successful, and pressure gauges would remain down the well until independent reserves had been assessed.

Bennett confirmed two main competing proposals, to construct a pipeline and take Kahili gas, LPG's and condensate, were still being evaluated, with a preferred development option likely to be chosen sometime next month.

The South Pacific truck-mounted drilling rig was today due to start the Cheal-1 re-entry project and flow testing of the gas-oil pay zone is expected towards the end of the month. An additional sand, which from electric logs appeared to be gas bearing, would also be tested. Depending on the results of Cheal-1, the adjacent Cheal-2 well might also be re-entered and tested. If these test programs were successful, further drilling was anticipated. Bennett added that in addition to the pay established in the original wells, deeper Mt Messenger sandstone oil potential was indicated and could also be a future objective.

The PEP 38753 joint venture had recently approved the drilling of the Wawiri-1 well in the third quarter to test the oil bearing potential of Mt Messenger sandstones in a trap situated just east of Swift Energy's Ngaere oil field.

Indo-Pacific was also preparing a drilling proposal for the PEP 38746 permit adjacent to the McKee oil field, which if approved, is planned to be drilled 'back to back' with Wawiri-1.

Bennett concluded by saying Indo-Pacific was planning to possibly drill several wells, targeting deep Kapuni group sands in various onshore Taranaki permits during the next 12 months, as a result of the rapidly strengthening New Zealand gas market.

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