The delay in getting meaningful flow test results from all three cleaned-up zones is prompting questions on whether Cardiff-2A will finally fulfil its potential and provide significant gas for permit partner and major electricity generator Genesis Energy.
Austral told the NZX yesterday afternoon that more than 500 barrels of condensate had now been produced and dispatched for sale during the clean-up of the top two zones.
A pressure build-up test was currently underway on the PEP 38738 well, but the fraccing sand inside the production tubing above the deepest test zone still had to be cleaning out. This would happen once a coil tubing unit, presently being used by another operator, became available, probably in mid-September. Resumption of Cardiff-2A flow testing would resume after this.
Meanwhile elsewhere in the same permit, the Cheal-A3X well had now produced over 26,600 barrels of oil and negligible associated water since late May, with Austral's share of proceeds being US$1.1 million to date.
Front end engineering and design (FEED) of permanent production facilities, including well-site electricity generation, was well advanced, Austral said.
Austral also provided further details to those given by PEP 38741 partner Tap Oil on the onshore Taranaki Supplejack-1 well hitting two potential pay zones.
Austral said electric logs indicated the lower of the Miocene-aged Mount Messenger sands, encountered near 1950m, might flow oil at a modest rate. Gas was likely from the upper zone (near 1350m).
Initial testing of the lower zone would proceed to oil production if successful, or if not, then testing of the upper zone would be done, with gas linked to nearby pipelines or used for on-site electricity generation in the event of success.
The PEP 38738 deep (Cardiff) partners are: operator Austral (25.1%), Genesis Energy (40%), Cheal Petroleum (15.1%) and International Resource Management (19.8%). The PEP 38738 shallow (Cheal) partners are: operator Austral (36.5%), Cheal Petroleum (30.5%) and IRM (33%).
The PEP 38471 (Supplejack) partners are: operator Austral Pacific Energy (30%), Tap New Zealand (50%) and Tag Oil NZ.
