MAUI 4 OIL STRIKE NOT COMMERCIAL

Press, Volume CX, Issue 32350, 16 July 1970, Page 1

MAUI 4 OIL STRIKE NOT COMMERCIAL

(New Zealand Press Association)

? WELLINGTON, July 15. Oil hjks been struck by the off-shore drilling rig at Maui 4 off the Targtnaki coast but it is most unlikely to be of commercial significance, Shell-BP-Todd Oil Services, Ltd, announced today.

“The presence of a light but; very waxy crude oil was confirmed,” said the company’s statement. (

“But the flow rate of only; 600 barrels a day indicates that ttrfs part of the Maui accumulation is most unlikely to be. of commercial signifi-cance-in view of the substantial distance from shore and the considerable water depth.” The company said no gas or condensate were encoun tered by hydrocarbon tests. “A decision regarding any further drilling in this area must await a detailed assessment of results obtained from Maui 4 and the results of a further seismic survey to be commenced towards the end of this month.” said the statement. Shell-BP-Todd said that no further announcement about the company’s activities in the Taranaki off-shore area would therefore be possible for some months. In the meantime the Sedco 135-F rig used at Maui 4 would now be used to carry out further drilling in othet areas off the New Zealand coast.

New Zealand Aquitaine Petroleum, Ltd, is to drill an well off Cape Farewell at the western tip of Golden Bay, the company announced today. Joint Venture Drilling will start when the Sedco 135-F rig has completed the Haku 1 well for; Hematite Petroleum (N.Z.),; Ltd, Aquitaine’s managing-; director, Mr M. Carvel, said! tonight. Aquitaine proposes to drill a well to be known as Cook 1 60 miles west of Tasman 1 and 16 miles off-shore. It will be the operator in a joint venture with Murphy Australia Oil Company and Odeco New Zealand Inc., under a farm-out agreement with the licensee of the area, Tasman Petroleum, Ltd, Mi Carvel said. Shareholders in Tasman

Petroleum include Beach Petroleum N.L., North Broken Hill, Ltd, Broken Hill South and L and M Oil, N.Z., Ltd. Shell-BP-Todd will carry out the drilling programme prepared by Aquitaine. Mr Carvel said in a statement: “Analysis of reports of I the results of Tasman 1 have 'been completed and although ;the results of this well were i disappointing we continue to regard the area as prospective.”