GAS

Mighty River Power gets serious about upstream gas work

NEW ZEALAND state-owned Mighty River Power is beefing up its upstream gas team, taking on former ...

Mighty River Power gets serious about upstream gas work

He joins former FCE business development manager John Bay and other team members looking at all aspects of the gas industry, from gas acquisition and transmission to exploration, ensuring future gas supplies for MRP in a post-Maui age.

Last Friday MRP announced it was moving upstream and joining Swift Energy in exploring for deep gas in onshore Taranaki. Today it confirmed O’Connor had been appointed as a geoscience specialist in charge of upstream due diligence work.

“I am very pleased to have Steve join us, given his extensive experience, over 30 years, in the international oil industry. He will be a great asset to our upstream team,” said Bay who is now MRP’s gas development manager.

O’Connor said he was very pleased MRP had formed an alliance with Swift Energy, an active player in New Zealand, as the several significant targets formed part of a “prime fairway play” in onshore Taranaki.

“Although Swift Energy will act as operator for this program, I am really excited for us to be involved in exploring this acreage,” O’Connor said.

Last Friday Swift Energy president and chief executive Terry Swift said MRP would be a partner in the 2005 Tarata Thrust exploration program, while MRP chief executive Doug Heffernan said his company’s alliance with Swift Energy formed part of his company’s efforts to expand its current electricity generation portfolio of hydro, thermal, geothermal and wind.

MRP’s involvement in gas comes through its ownership of the 122MW Southdown cogeneration plant in south Auckland and its Mercury Energy subsidiary retailing gas and electricity services mainly through the upper North Island.

Swift Energy and MRP plan to drill at least three wells targeting Eocene-aged Kapuni group sands within Swift’s onshore Taranaki acreage, the first being Goss-A1 within the Goss prospect located within the formerly prolific oil-producing Waihapa oil field in central Taranaki.

The other wells will target similar formations in the Trapper prospect within Swift’s Tariki-Ahuroa-Waihapa-Ngaere (Tawn) fields and the Tawa prospect within the more southern Rimu-Kauri fields.

MRP is funding the drilling of these deep gas prospects in exchange for 50% equity in any commercial discoveries. Once MRP has earned its 50% interest, Swift Energy and MRP will equally share any future development costs, though Swift will continue to maintain its 100% working interest in the existing Tawn and Rimu-Kauri producing horizons and production facilities.

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