Kupe partner New Zealand Oil & Gas told the ASX and NZX yesterday that an additional 200PJ of gas and 1.7 million bbl of condensate could be extracted from the northwest of the central field area and from the nearby Denby and Leith prospects, as well as from the two Kupe South wells.

Chief executive Tony Radford and general manager Gordon Ward said a final investment decision was expected from operator Origin Energy and the other partners within the next two and a half months.

Given a positive FID, first gas from the Kupe field off south Taranaki was expected in late 2008.

Radford and Ward said Kupe would improve security of New Zealand’s gas supply, create a substantial number of jobs and contracting opportunities, and enhance Taranaki’s reputation as an energy region.

They said current 2P Kupe reserves were 281PJ of gas, 14.7 million bbl of condensate and 627,000 tonnes of liquefied petroleum gas. Anticipated annual production was about 20PJ of gas.

However, there was also significant upside potential – of up to 200PJ of gas and 1.7 million bbl of condensate – from the northwest of the central field area (CFA) and from Denby, Leith and the Kupe South-4 and 5 wells.

Initial planned field development would be around the CFA, with three production wells, a normally unmanned platform and remote control via the manned onshore production station.

There would be six well slots – three initially, and three spare risers for the later tie-in of satellite operations. The platform would sit in about 35m of water about 30km offshore. Gas from the onshore production station would be fed into the nearby high-pressure North Island gas reticulation network.