The Parker Drilling Rig 246 spudded Kowhai-A1 in licence PEP 38742 earlier this month, but it is not expected to reach the anticipated target depth of 4000m or so for another month or so.

Kowhai-A1, which is targeting several Eocene-aged formations, is Swift Energy’s second joint venture well with downstream user Ballance Agri-Nutrients.

Early last year, the first Swift-Ballance well, Karaka-A1, which targeted shallow Miocene-aged Mount Messenger sands, failed to find commercial hydrocarbons.

Ballance has assured gas supplies until September next year, thanks to a contract it signed last November with Vector subsidiary NGC, which is supplying about 7 petajoules per annum to the ammonia-urea plant.

But the company needs further assured gas supplies if it is to keep its ammonia urea plant operating into the next decade.