Greymouth said it had briefed Crown Minerals on its unitisation plans for the Kaimiro-19/Goldie oil pool and had also advised Crown Minerals of the reasons why "good oilfield practice dictates continued production of the pool".
Greymouth outlined its approach and rationale for pool development, including an optimal production policy of "voidage control" for the area involving production of the pool in a slow and steady manner, which would conserve reservoir pressures and minimise excessive gas production rates.
Appraisal of the pool is to continue with the drilling of further appraisal wells. At the same time, development planning, including the design of injection wells, key facilities and pipeline infrastructure, was being addressed.
Greymouth chairman Mark Dunphy said they were pleased to have had the opportunity to brief Crown Minerals (part of the Ministry of Economic Development) on progress and assured the industry that "Greymouth and the Ministry will continue to work in close co-operation on the matter as future development decisions are taken."
On 11 June 2003 EnergyReview.Net reported certain claims made by Indo-Pacific's chief executive, Dave Bennett, regarding the Kaimiro-19 Well.
EnergyReview.Net has investigated these claims and acknowledges they were incorrect. This follows findings by the New Zealand High Court in litigation between Greymouth and the Indo-Pacific subsidiary, Ngatoro Energy Limited, that Ngatoro Energy Limited had acted toward Greymouth in bad faith and with a lack of candour and had made deliberate and false misrepresentations to Greymouth, the Taranaki Regional Council and the Ministry of Economic Development.
Pre and post drill well data was supplied to the relevant authorities during and after the drilling of the K-19 Well. Indo-Pacific knew Greymouth was considering drilling the well and the parties discussed using the Goldie well site for this purpose.
EnergyReview.Net understands that in fact Kaimiro 19 was drilled in response to Indo-Pacific's refusal to discuss unitisation. If parties do not agree to unitisation, a well must be drilled to prove the existence of a reservoir extending into a neighboring permit.
Crown Minerals received the normal pre well notices. Crown Minerals and Indo-Pacific's legal counsel were given all the relevant details about the well path and its bottom hole location not long after drilling operations concluded. There is no evidence of damage to the Goldie reservoir as a result of Kaimiro 19, the well was logged and was completed in accordance with good oil and gas field practice.
Greymouth is to assume operations of the Goldie field and to develop Goldie and Kaimiro 19 as a unit. This will include taking steps to tie Goldie into the Kaimiro production facilities.
