COMMERCIAL Aquitaine To Double This Year’s Budget

Press, Volume CIX, Issue 32274, 17 April 1970, Page 16

COMMERCIAL Aquitaine To Double This Year’s Budget

Aquitaine (Australia and New Zealand), Ltd, the parent company of New Zealand Aquitaine Petroleum, Ltd, which drilled the unsuccessful Tasman No. 1 well off Nelson, is doubling its exploration programme in Australia, New Zealand and Tonga.

The oil exploration budget for this year has been increased from 56,644,817 to $13,100,000, the chairman (Mr R. N. H. Denton) told the annual meeting in Brisbane yesterday.

Mr Denton also said that negotiations had reached an advanced stage for the farmin to New Zealand Aquitane Petroleum, Ltd, of an interest in areas located in the onshore Taranaki basin and in the on-shore/off-shore Greymouth area.

Referring to last year’s activities Mr Denton said: “During March the drilling of the Tasman well in the Taranaki basin tenement, in which New Zealand Aquitane Petroleum holds a major interest, was completed. The drilling terminated in the economic basement without encountering hydrocarbons. "The information gained is being studied in order to determine the future programme for this area. “Although the result of the Tasman well was disappointing, there are other structures for investigation, and, in the board’s opinion, the area remains prospective.

"The 1969 year brought the Aquitane group to the stage where it is now undertaking more extensive off-shore drilling activities, and Petrel No. 1, in the joint ArcoAquitaine concessions, was our first off-shore well. In August during the drilling of this well, a strong gas flow occurred which could not be controlled and the rig was damaged. Gas is still burning from this blowout” Mr Denton said. “Work has been carried out in all the areas in which Aquitaine holds interests. The company has been active in seeking further exploration areas in Australia, New Zealand and Tonga. Our joint application with Total Exploration Australia Pty, Ltd, Beach Petre leum N.L., and Boral, Ltd, for an off-shore Queensland permit is still pending.

“Australian Aquitaine Petroleum Pty, Ltd, is a member of a group to which the Kingdom of Tonga has agreed to grant exploration rights for the whole of its territory,” he said. “The exploration budget of the group for 1970, predominantly for oil, is $13,100,000. Subsidies are expected to amount to $100,000: the reduction, compared with the subsidies received last year, being the result of the Australian Government’s deci- ;

sion to restrict payment for off-shore exploration to Australian ownership,” he said. The Sedco 135 G, operating in the Arco-Aquitaine Timor Sea permit, returned to location in February and commenced directional drilling of a relief well for Petrel No. 1.

“It is the intention of the

group to accelerate drilling in the Bonaparte Gulf-Timor Sea permit by engaging a second rig. A larger variety of opportunities exists in these areas and the use of , two rigs will enable further ’ large and promising struc- ' tures to be promptly explored. ; “The re-capitalisation of • our group referred to in the • directors’ report and the in- • troduction of outside share- : holders (predominantly Australian) has been a first step in the Aquitaine policy of inviting local participation.”