Crown Minerals reports that Goldie-2 spudded on November 5 and had reached an unspecified target depth by the end of the month.

It quotes Greymouth principal John Sturgess as saying Goldie-2 experienced extensive mud losses and that the well was being tested to evaluate its potential as a producer or a water injection well.

Sturgess said two more wells would be drilled from the Goldie site during 2004 and that the expanded pipeline network would enable further water injection projects to be implemented in the area.

Further pipelines would shortly be laid between Ngatoro and the adjacent Kaimiro field, which Greymouth owns and operates, to provide extensive services to all main Ngatoro and Kaimiro sites, and significantly enhance hydrocarbon recoveries in the area.

Sturgess added that further well testing and studies were planned to determine the optimal production-injection pattern for the Goldie pool, with the aim of having the first phase development onstream by next March.