Operator Austral Pacific Energy’s latest weekend report said the Parker Drilling 246 rig had drilled through the first reservoir within the Eocene-aged Kapuni formation, the McKee sand, with it being intersected at the expected depth below 4000m.

The well had also penetrated the second major Kapuni target below 4130m, where a pressure kick was encountered.

“Significantly elevated levels of gas were recorded during drilling, as predicted. The McKee sand is the first of a number of gas-bearing sandstones within the Kapuni formation that are expected to be intersected before the well reaches TD near 4900m later this month,” said Austral.

The Kapuni formation would then be cased in preparation for perforating chosen intervals for initial flow testing.

Electric log indications of pay within the shallower Mt Messenger interval (around 1700m) would not be further evaluated with this well, but would provide valuable assistance in future exploration for Mt Messenger oil and gas traps within the large licence.

Also within PEP 38738, production testing of the Cheal-4 well, using jet pump technology to assist in lifting the oil, was continuing. Technical challenges associated with the viscous nature of the oil, and the need to maintain the well and its related processing and storage facilities at high temperature, were being addressed.

Once the well had heated up and wax cutting techniques optimised, Austral expected significant increases of the initial flow rates of 240 bopd of oil and 100 mmscf/d of gas. The nearby Cheal-A3X was being used as a Cheal-4 “observation” well but would similarly be brought into production in the near future.

Drilling of the Miromiro-1 well (Austral 27.5%) is expected to commence this coming weekend. Miromiro will take approximately two weeks to reach its 1930m (6,400 feet) Target Depth.