"We believe New Zealand has incredible exploration opportunities and there are significant resources still to be discovered," said company president Terry Swift today during the official opening of the Rimu facilities south of Hawera. Associate Energy Minister Paul Swain officially opened the production station.
"While there are some concerns regarding future gas supplies, and the Pohokura field definitely has a part to play in meeting those concerns, we believe the key is real development, ensuring there is lots of activity," he said, referring to the 1tcf-plus Pohokura gas-condensate field off north Taranaki.
Several more fields the size of Pohokura need to be discovered within the next few years to prevent significant gas supply shortfalls and widespread power shortages New Zealand continues its economic growth in a post-Maui age. Maui, the country's largest single energy resource, is expected to be depleted by mid-2-007 and not the (expected and) contracted 2009.
Terry Swift said the greater the number of wells drilled, the more likely it was that further significant commercial strikes would be made.
"We believe the resources are here to be discovered and Swift Energy Company will play its part in exploring and developing those resources for the good of the region and the country as a whole."
He said Swift Energy was not slowing down the pace in its exploration licence PEP 38719, nor the pace of development within the smaller Rimu mining licence. "There are lots of growth opportunities in Rimu itself, more fully exploring the lower Tariki sands. There are also lots of opportunities within the larger exploration permit."
He said the Kauri-A4 well, which was a deep well likely to take up to 100 days to drill, was scheduled to spud next week. Another two wells were planned by the end of the year - either two more Rimu development wells, or one Rimu well and an exploration wildcat in either of the separate Tawa and Matai prospects within PEP 38719.
The company saw significant growth potential for the Kauri structure, significant production opportunities from the shallow formations, such as the Miocene-aged sands or the untested Urenui sands, or even the deeper Kapuni or Cretaceous zones.
Terry Swift confirmed Swift Energy New Zealand (SENZ) had bid for several onshore permits in the latest Crown Minerals onshore and near-shore Taranaki blocks offer. The Swift Energy New Zealand bids had encompassed acreage to the west and east of Rimu and up along the central Tarata thrust belt.
"We made some very serious bids with some significant work programs."
Twenty-one companies made over 40 bids for the 26 new permits - with total proposed work programs submitted worth over $NZ540 million. Associate Energy Minister Paul Swain may announce the successful bidders before New Zealand's general election in late July.
Mr Swain told the almost 60 people at the official opening that it was great to see Rimu producing oil, gas and LPGs.
Oil production is up to 1270 barrels of oil per day (bopd), gas production is up to 2.8 million cubic feet per day (mmscf/d), and preparations are underway to commission the LPG loadout system, both butane and propane, for first road tanker shipments.
"Not only does this mean a return from an investment for the partners, but it also means that there are new permanent jobs here in south Taranaki. Through royalties and taxes the government will also be getting a return on the investment it has made in encouraging Swift Energy and other companies to come to New Zealand.
"It is worth remembering that a resource left in the ground has very little value. It takes companies like Swift, with new ideas and concepts about the geology beneath us, to risk their money to reveal the worth of the oil and gas in the Rimu field and to bring deposits to fruition," added Swain.
SENZ was earlier this year awarded a 30-year petroleum mining permit PMP 38151, over 5524 acres within the petroleum exploration permit PEP 39719, to allow for the full development of the Rimu discovery.
Swift believes the Rimu, Kauri, Matai and Tawa prospects, plus additional leads within PEP 38719 have the potential to contain up to 250 million barrels of oil.
Swift had had a considerable impact on the New Zealand energy sector and Swain quoted the United States magazine Oil and Gas Investor in its April cover story on New Zealand: "No independent has made a bigger splash in New Zealand than Houston's Swift Energy."
The minister said that had been quite a splash, with SENZ drilling 11 exploration, wildcat and sidetrack, and development wells over the past two and a half years. Swift had also taken interests in several other Taranaki permits; had bought the lion's share of the Tariki, Ahuroa, Waihapa and Ngaere (Tawn) fields for $US54.4 million earlier this year; and had spent about $US25 million on the Rimu production station in a near-record nine-month construction timetable.
"This level of investment by Swift has been a vote of confidence in New Zealand as an exploration destination and the government is trying to persuade other oil companies to follow Swift Energy's lead in investing in exploration here."
He said the good news from the Rimu and Pohokura discoveries had helped to encourage more exploration in New Zealand. A total of $153 million was spent in 2001 on petroleum exploration activity by some 53 companies in 59 different permit areas.
This increasing interest was continuing in 2002 and was demonstrated by the number and level of bids received for the recent onshore and near-shore Taranaki bidding round.
"With the Maui field now in decline, New Zealand needs to find more gas and more oil. More explorers like Swift Energy and more investment is needed to help meet New Zealand's future energy needs," concluded Swain.
