The partners - headed by operator New Zealand Overseas Petroleum (a Transworld subsidiary) - are also already talking about rapid development plans for all four oil-prone prospects, with production starting from possibly mid-2005.

EnergyReview.Net last month predicted the PEP 38460 partners would further utilise the Ocean Bounty to undertake additional drilling over the Pateke and Kiwi prospects, which were delineated by the 2003 Tui 3D seismic survey and found to be similar in size and style to Tui and Amokura. Site surveys have already been done over both Pateke and Kiwi in readiness for drilling.

ERN also said Pateke and Kiwi could be tied in to any joint development project as they are within 4-8 km of Tui-Amokura and that the partners had already approved contingent development expenditures for Tui-Amokura.

Wellington-headquartered New Zealand Oil & Gas said late Friday afternoon that “near-term” development was on the cards, while Australian Worldwide Exploration said success at Pateke and-or Kiwi would most likely provide AWE with its fourth cornerstone asset area.

“We have a near-term oil field development in our sights,” said NZOG executive chairman Tony Radford, “with the two additional wells, the partners are targeting substantiation of a combined development of Tui, Amokura, Pateke and Kiwi.”

AWE managing director Bruce Phillips said the PEP 38460 joint venture had unanimously agreed to expand its current wildcat drilling program and that success at Pateke or Kiwi would “most likely provide AWE with a fourth cornerstone asset area along with the company’s interests in the Bass (Yolla field), Otway (Casino field) and Perth (Cliff Head field) basins”.