Indo-Pacific chief executive Dave Bennett told EnergyReview.Net that the plan was to test more of the 36.5m Tariki sandstone interval encountered during drilling late last year.

"Originally we were quite conservative when it came to testing and at first we did not know if we were targeting a gas column or an oil leg. As it turned out, it was a gas column with no discernable formation water.

"So we have learned quite a lot from testing the top 15 metres of that zone and now believe we can get better flow rates from deepening that producing interval. The next five metres at least look pretty good, though we will be proceeding cautiously."

Bennett said the second test was planned to start sometime in April, once Taranaki's total fire ban had been lifted and Indo-Pacific had secured enough test equipment. Testing could last for up to two weeks, compared with the five-day initial test.

During initial production testing last December, the Kahili-1B sidetrack well flowed at rates up to 5 million cubic foot of gas per day through a 1/2" choke, with up to 40 barrels of condensate per million standard cubic foot of gas. The condensate was a premium 52 degree API gravity, clear light oil with no significant wax or sulphur content.

Bennett also said the PEP 38736 partners - Indo-Pacific Pacific (which holds 45% equity) and Aussie companies Tap Oil (30%) and Claire Energy (25%) - would be closer to announcing their preferred development option for Kahili after the second test results had been analysed.

Indo-Pacific believes significant upside potential exists for the Kahili field, as the Kahili-1B discovery is separate from the oil pool discovered by the earlier Kahili-1 well and that there are good opportunities for the discovery and development of other gas or oil pools within the licence.

Tap Oil estimates potential recoverable volumes at Kahili-1B could be of around 14 mmbbls of oil and 18 bcf of gas. However, industry commentators say Kahili and its surrounding prospects and plays could eventually prove to be larger than the nearby Tariki and Ahuroa fields, which Crown Minerals estimates originally held 3.2 million barrels of condensate, 115 bcf of gas and 300,000 tonnes of LPG.