Earlier this week AWE upgraded the 2P (proved plus probable) reserves of the Tui project by about 15%, to 32 million barrels of recoverable oil.
NZOG said yesterday that, at current oil prices and exchange rates, this increase in 2P reserves would deliver the New Zealand explorer about $NZ50 million in additional revenues with only minor associated operating costs.
Managing director David Salisbury told PetroleumNews.net there was potential for significantly increased reserves within the Tui and Kupe permits.
NZOG presently only operates in Taranaki, “which is maturing but certainly not depleting”, but other parts of New Zealand also held some promise, he said.
“We are looking at Taranaki right now for further opportunities, though at some stage we will probably move to some of the higher risk, higher reward regions,” Salisbury added.
Yesterday, the company announced a surplus of $NZ6.6 million (after minority interests) for the year ended June 2007, compared with the previous period’s surplus of $NZ2.3 million.
NZOG said the latest surplus was made after writing off exploration costs of $NZ3.7 million.
Total revenue for the year was $NZ18 million ($7.5 million in 2006), including an $NZ8 million gain on the sale of NZOG's interests in listed minority Tui partner Sydney-based Pan Pacific Petroleum and a $NZ4.6 million gain in respect of NZOG's shareholding in Pike River Coal Limited.
During the year, NZOG invested $NZ110 million in its three developments -- the Tui Area oil project, the Kupe gas-condensate field, and West Coast Pike River coal.
Less than a month since commercial production started at the Tui Area oil field facilities off Taranaki, New Zealand, operator Australian Worldwide Exploration and its partners are just 3000 barrels off reaching the Umuroa floating processing, storage and offtake vessel’s maximum 50,000 barrels per day processing capacity.
Tui partner New Zealand Oil & Gas yesterday afternoon announced that the flow rate from three of the four Tui, Amokura and Pateke production wells was now about 47,000bpd.
NZOG said further minor improvements were being made to the production facilities to achieve the Umuroa’s full maximum design capacity on a consistent basis.
Six 300,000-barrel shipments of Tui oil have been sold to date, with two having already been shipped to markets on the east coast of Australia.
The Tui partners are operator AWE (42.5%), Mitsui E&P NZ (35%), New Zealand Oil & Gas (12.5%) and Pan Pacific Petroleum (10%).
