Austral said the workover of the well was scheduled for the last quarter of this year or early 2007, depending on the availability of equipment.
As part of this work, existing production tubing would be pulled and replaced with a new completion that would allow the Eocene-aged K3E, K1A and McKee Sands to be tested independently of each other.
“This will allow for an optimal test of each of the reservoir intervals in the existing borehole,” Austral said.
The Cardiff-2A sidetrack started in early 2005 but progress has been slow because of technical problems, formation water and zone isolation problems.
Elsewhere in the same licence, Austral said it had identified six Miocene-aged Mount Messenger targets for drilling from the new Cheal B site and three additional targets from the Cheal A site to complement the four existing wells.
In addition, a Miocene-aged Moki structural culmination had been interpreted as being within reach from the Cheal B site. The target location was updip from the Cheal-1 Moki intersection that sampled well-developed sandstones with good oil and gas shows.
Detailed design of surface production facilities was progressing and construction of the Cheal B well site continuing, with the first of the conductors scheduled to be installed next week.
Long-term production testing from the Cheal-A4 well using interim production facilities continued uninterrupted.
Last month, Austral said it and its partners planned to spend $NZ25 million ($A22 million) developing Cheal, with first oil expected to flow from permanent production facilities by early next year.
In addition, processing of the recently completed Brecon 3D seismic survey over the Cheal and Cardiff discoveries was nearing completion, with the data being used to optimise bottom-hole locations for the Cheal development wells and to further define drilling targets in the Cardiff field.
Meanwhile, Austral said processing of the 2D Whaler marine seismic data of its Canterbury Basin, South Island permit PEP 38258 had been completed. The results and a grid of reprocessed 2D seismic lines were being integrated into the existing 2D data set.
The objective of the Whaler survey was to “infill” existing seismic coverage over the Whaler, Caravel and Coracle Prospects.
Austral has applied for a petroleum exploration permit over an offshore area west of D’Urville Island at the northern tip of the South Island. But it was also moving to pull out of several permits as part of a comprehensive review of its New Zealand portfolio.
Austral has surrendered offshore Taranaki licence PEP 38492 and onshore Taranaki PEP 38753, and is withdrawing from the offshore Canterbury PEP 38256 joint venture. It also intends to withdraw from onshore Taranaki PEP 38744.
“This ongoing rationalisation of our New Zealand assets allows the company to focus spending and resources on core projects and the more prospective permits,” Austral said.
The PEP 38738-01 (Cheal) partners are operator Austral (36.5%), TAG Oil (30.5%) and Arrowhead Energy (33%).
The PEP 38738-02 (Cardiff) partners are operator Austral (25.1%), Genesis Energy (40%), TAG (15.1%) and International Resource Management (19.8%).
