AWE said this morning that Tieke-1 had reached a total depth of 3579m and had encountered minor hydrocarbon shows in the primary Kapuni sands target.

The joint venture was now assessing the results to determine whether to suspend the well for a potential sidetrack to a deeper Kapuni target.

Following completion of operations at Tieke-1, the semi submersible Ocean Patriot drilling rig will start development drilling on the adjacent $US225 million (A292 million) Tui Area oil project.

Tieke-1 was only about 8km from the Tui oil pool and is in the Tui Area licence, PMP 38158, roughly 40km offshore.

The PMP 38158 partners are operator AWE with a 42.5% stake, New Zealand Oil & Gas (through its subsidiary Stewart Petroleum) (12.5%), Mitsui E & P New Zealand (35%) and Pan Pacific Petroleum (10%).