Swift Energy today said Crown Minerals had awarded PMP 38155, within the existing PEP 38719, to subsidiary Swift Energy New Zealand (SENZ) primarily for developing its Kauri and Manutahi discoveries in the onshore Taranaki Basin.

In addition to the existing A and E pads, SENZ planned two additional multi-well drilling pads to allow for full development of the Miocene-Oligocene aged Kauri sands, an intermediate depth gas-condensate reservoir. In addition, further wells were needed to exploit the Pliocene-aged Manutahi sands, a shallow oil reservoir.

Current plans call for drilling the remaining scheduled Kauri A and E wells, and Manutahi A-L series of wells by next March. Another 10 wells were also planned before July 2008, raising the total field count to 32 wells.

Capital expenditure required for these additional activities was expected to be about US$80m.

Swift Energy president Bruce Vincent said his company was extremely pleased to be awarded the new mining permit which would allow SENZ to complete the development phase of this long-term project.

“As we move forward with the continued delineation of the Rimu-Kauri area, we hope to be able to expand the area covered by this mining permit,” Vincent said.

Kauri gas production would be processed at the company’s nearby Rimu production station, while Manutahi oil would initially be trucked north to the company’s Waihapa production station.

SENZ also planned additional exploration drilling later this year in the PEP 38719 area with the drilling of the Tawa prospect, which was part of the Tarata Thrust exploration program.

Crown Minerals also said SENZ planned a 70-110km 2D transitional zone seismic survey in the Rimu-Kauri area to help identify deep Tariki sands and additional potential Kauri and Manutahi sand targets.