OPERATIONS

Tui hits high note: AWE

OPERATOR Australian Worldwide Exploration says it is confident that the Tui Area oil development ...

Tui hits high note: AWE

Sydney-based AWE said yesterday that Tui, named after a New Zealand songbird, had produced about 3.5 million barrels from late July to the end of October.

Production for the September quarter was about 2.4 million barrels at an average rate of 38,500 barrels per day for the 62 productive days during the commissioning phase.

"The start of production from the Tui project was the highlight of AWE's September quarter," the company said.

"Based on this strong performance, AWE confirms its production target [of 10 million barrels] for the project for the June 2008 financial year."

AWE also said Tui production was continuing uninterrupted, despite investigations into the accidental discharge of contaminated production water from the floating production storage and offtake vessel Umuroa on the morning of October 21.

Across its projects, AWE produced a record 2.1 million barrels of oil equivalent in the September quarter, an increase of 95% on the previous quarter.

Tui production complemented strong gas output from the Casino gas project (AWE 25% share) where gross production averaged 134 terajoules per day, significantly above the originally contracted levels.

AWE said Casino production would be enhanced by the future development of the Henry gas project (AWE 25%), for which front-end engineering and design work was complete.

September quarter output was also boosted by a strong performance from the Cliff Head oil project (AWE 27.5%) where gross production in the quarter averaged about 8800bpd, with September monthly production reaching a record 11,200bpd.

At the BassGas project (AWE 30%), gas and liquids production achieved design throughput rates.

In addition, AWE and its partners completed their offshore Taranaki exploration program during the quarter.

"Although the campaign did not provide immediate commercial success, we remain enthusiastic about the ultimate potential of the region," AWE said.

"Oil columns were intersected in three of these exploration wells, Tieke-1, Taranui-1 and Kopuwai-1, which further proves an active oil generative system is in place," AWE said.

In Taranaki, the rig drilled Tieke, Taranui and Kopuwai, near the Tui mining licence PMP 38158, and the Hector-1 and West Cape-1 wells further south, as well as four Tui development wells.

New seismic has also been acquired and substantial reprocessing has been undertaken.

"The new data, along with the results of our drilling campaign, will be evaluated over the next six months to set the course of our future exploration program in the Taranaki Basin," the company said.

In PEP 38401, offshore Taranaki, AWE (operator with 50% equity) had an 831km 2D seismic survey shot over the Hoki prospect. The data was being processed in Singapore, with interpretation expected to start in the December quarter.

In PEP 381202, offshore Taranaki, AWE (operator with 100% equity) started geological and geophysical work, initially focused on the Paua prospect. About 1815km of vintage 2D seismic data is being reprocessed.

In PEP 38499, offshore Taranaki, AWE (operator with a 42.5% share) has acquired a 530km 2D seismic survey, largely focused on the Toke prospect.

That is being processed, along with the reprocessing of some older seismic. Interpretation of the new data was to start in the December quarter.

AWE also said it and its joint venture partners in the offshore Canterbury block PEP 38259 (AWE 25% share) were continuing to review the results of the unsuccessful Cutter-1 well drilled late last year and the implications for the nearby larger Barque gas prospect.

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