Taranaki gas find has commercial potential

Press, 27 October 1982, Page 1

Taranaki gas find has commercial potential

PA Wellington Onshore oil and gas potential in north Taranaki was boosted yesterday by Petrocorop’s confirmation of significant gas flows at its Kaimiro 1 well, west of Egmont Village.

In a statement prompted by week-end reports of explosions at the well site, Petrocorp’s chairman, Mr E. W. Orr, said that significant natural gas had been found at 3600 m. He said a nine-hour test of four zones between 3600 m and 4700 m suggested a daily flow of 113,200 cubic metres of gas, plus some condensate. The three deeper zones had produced only minor quantities of hydrocarbons. Temporary production facilities would be built for more tests to check whether

the field was commercial, said Mr Orr. The field appeared to be “marginally commercial,” said the Prime Minister, Mr Muldoon yesterday. The field was very close to the Kapuni pipeline and if further testing proved its worth, it could be piped straight into the Kapuni line, he told reporters. The Minister of Energy, Mr Birch, had reported to yesterday morning’s Cabinet meeting that week-end testing showed the field to be "marginally commercial."

it was a relatively small field, but its proximity to the Kapuni line made it a valuable asset. “We are very pleased with the test results,” said Mr Orr. But more work needed to be done before it was known whether Petrocorp had found a new commercial field. Mr Muldoon said that the results proved his belief that there was still oil and gas to be found in New Zealand. The find is not expected to upset gas plans based on the Maui and Kapuni fields. Daily flows at Kapuni, from structures about 4000 m, are now at least 34 million cubic metres, and the Maui figure is up to 186 million cubic metres. Surface geology reports also suggest that the Kaimiro field is a small structure. Tests to check the viability of extracting its gas are expected to take up to a year, and will add to a busy programme for the Stateowned corporation.

Drilling starts next week on the Stratford 1 well, the third of Petrocorp’s current deep-well drilling projects in north Taranaki

Approval is also expected soon for $3O million development of McKee oil field north of Kaimiro, which was rated commercial in October, 1980. It is timed for first output in 1984.