Though Indo-Pacific has not yet published any proven, probable or possible reserve figures, industry commentators say Kahili and the surrounding plays could prove to be larger than the nearby Tariki and Ahuroa fields. Crown Minerals estimates the original reserves of Tariki and Ahuroa to be 3.2 million barrels of condensate, 115 bcf of gas and 300,000 tonnes of LPG.
So, the wider Kahili area should prove very interesting and useful for Indo-Pacific Pacific (which holds 45% equity in Kahili) and its fellow PEP 38736 partners, Aussie companies Tap Oil (30%) and Claire Energy (25%).
Company chief executive Dave Bennett said downhole pressure gauges were retrieved from the Kahili-1B well in late December and analysis of these indicated sufficient proven reserves of gas and condensate to justify development. There had been no significant pressure drop during five days of testing, when up to 5 mmscf/d of gas and 200 bopd of condensate were produced.
Bennett today declined to give specific reserve numbers, though he did tell EnergyReview.Net his gut feeling for the field was that future proven and possible reserves figures would be several times greater than present estimates.
Kahili-1B was expected to be in commercial production by mid-2003. Gas pipeline tie-in and electricity generation options were presently being assessed to determine the best development strategy for the field.
He said the partners could sell Kahili gas to such generators as Contact Energy, which is to buy the Taranaki Combined Cycle plant at Stratford from NGC, or even produce embedded electricity themselves and have it transported by electricity and gas reticulator Powerco. Indo-Pacific had already had preliminary discussions with New Plymouth-headquartered Powerco about the options for Kahili gas and electricity.
Significant upside potential existed as the Kahili-1B discovery was separate from the oil pool discovered by the earlier Kahili-1 well and there were good opportunities for the discovery and development of other gas or oil pools within PEP 38736. As well, Kahili-1B flow rates could be enhanced by extending the present production zone to include the lower half of the Tariki sandstones which were not accessed in the original flow test.
He added that Indo-Pacific was hopeful of being involved with more small shallow commercial discoveries in onshore Taranaki. Flow testing of the nearby Tabla-1 well, in which Indo-Pacific holds a 5% stake, was about to start. A 10m interval below 1417m contained several indicated oil bearing sandstones, with those in the lowest 3m having the best expression of potential oil pay.
In PEP 38738, Indo-Pacific was preparing to re-enter and flow test the Cheal-1 well, targeting the sandstones about 1220m down which had previously flowed oil and gas, to verify their long term viability. Following this, a production program would be initiated, which might include the re-entry of Cheal-2 and the drilling of additional wells into the field.
Western-Geco was drilling shot holes for a 76 sqkm 3D seismic survey over several licences held by Indo-Pacific and Bridge Petroleum around the Kaimata area to identify further Mt Messenger targets for drilling later in 2003 and beyond.
Meanwhile, Bennett added that Indo-Pacific subsidiary, Ngatoro Energy Ltd, had lodged its own counter claim to Greymouth Petroleum's High Court dispute over the Goldie oil discovery. This related to Greymouth Petroleum actions, which allegedly hindered and prevented Ngatoro Energy in the production of oil from the Goldie-1 well. Both the Greymouth and Ngatoro Energy claims were likely to be heard in Wellington during March and April.
