AWE and NZOG said the first stage of the 500 square kilometre survey program over these Taranaki Basin blocks started on Good Friday

The initial part of the survey will cover the Tui Area not previously covered by 3D seismic in the northern part of PEP 38460.

This 80 square kilometre section would complete the original 2003 survey and help define the extent of last year’s Pateke oil discovery, which was part of the Tui Area oil development presently proceeding through FEED.

The second stage would see the PEP 38483 partners acquire about 420 square kilometre of new 3D seismic over the Hector and Hector South prospect areas.

“The two surveys were expected to be completed by the end of April, and to assist in selecting future drilling candidates for the two joint ventures in very prospective acreage,” the companies said.

“The PEP 38483 seismic is to be acquired over a cluster of prospects we believe are similar to the Tui area oil pools and the aim is to select the best for exploration drilling in the first quarter of next year,” NZOG general manager Gordon Ward told EnergyReview.net this morning.

“This area is considered highly prospective due to a combination of favourable reservoir development within the Kapuni F sands and the prime location for oil charge from the adjacent Kahurangi Trough.”

At least one 38483 well should be drilled, together with four development wells for the Tui area and up to three exploration wells in 38460 during the first half of 2006, Ward said.

AWE managing director Bruce Phillips said Crown Minerals had approved the relinquishment of a portion of PEP 38460 over the Hector Area and for the extension of PEP 38483 the over that same area, as announced earlier this month.

“We are pleased to progress the Tui Extension and Hector 3D seismic surveys as AWE’s first active operational role in New Zealand,” Phillips said.

“Fast-tracking the acquisition and processing of the data from these two seismic surveys will assist in selecting future drilling candidates.” Phillips said.

Mitsui, which was already a PEP 38460 partner, recently farmed into the PEP 38483 block by partially carrying AWE, which operates that block, through the 420 square kilometre seismic acquisition.

Equities in PEP 38483 are: AWE New Zealand (operator) 44.317%, NZOG (via subsidiary Stewart Petroleum) 18.864%, Mitsui E&P New Zealand 22.728% and

WM Petroleum (Pan Pacific Petroleum NL) 14.091%.

Equities in PEP 38460 are: New Zealand Overseas Petroleum Limited (operator) 45.9%, AWE NZ 20%, NZOG (via subsidiary Stewart Petroleum) 12.5%, Mitsui E&P NZ 12.5% and WM Petroleum (Pan Pacific Petroleum NL) 10%.