Kupe seeks $10M in next oil float

Press, 1 October 1983, Page 21

Kupe seeks $10M in next oil float

PA Wellington Kupe Petroleum, the fifth of the oil exploration companies seeking money from the investing public to drill wells in mostly offshore prospects around the New Zealand coastline, regis-

tered its prospectus yesterday. The main prospects offered by Kupe come from interests in licences held by Fletcher Challenge, Ltd and Orion Services, Ltd. Four offshore wells drilled by Kupe are estimated to cost between $7.2M and S9.BM. The issue is for SIOM in 40 million 50c shares paid to 25c. Of this $850,000, or 3,400,000 shares, will be paid for the purchase of Aurora Petroleum and $1.15M, or 4,600,000 shares, will be paid for the purchase of Orion Services, Ltd. The directors are; chairman, Mr Peter Grayburn (accountant, chairman TNL), Mr Bryan Halliwell (Orion), Mr Grahame Hamilton (FCL), Mr Scott Jolly (Green McCahillOrion), Mr Norton Moller (Moller Holdings). Kupe has four main interests. The first, area 109, has Diamond Shamrock Oil Company NZ, Ltd, as the operator and Kupe has a 6.25 per cent share of the licence and 7.65 per cent of the cost. Area 116 has Petrocorp NZ Exploration, Ltd as the operator, and Kupe will pay 23.5 per cent of the costs for a 19.52 per cent share of the licence. Area 073 has Pancontinental Petroleum, Ltd as the operator and Kupe will pay 20 per cent for 16.33 per cent of the licence. Area 058 has Cultus Pacific NL as the operator and Kupe has a 6.4 per cent share of the licence. For the first well,

Kupe will pay 10 per cent and it will then be reduced to 6.4 per cent. Area 109, offshore Taranaki, has had no exEloration drilling previously ut is expected to be spudded by the Benreach rig in December. It is considered to be a higher risk than the other prospects because the characteristics of the Kapuni Reservoir are not known with any certainty. Costs of drilling will be high because it is proposed to go to 3965 m. Area 116, in the Taranaki basin, is south of the Kapuni field. The Kupe 1 well was drilled in 1975 but flow rates were disappointing. Rua-Kupe is 15km away and is seen as a prime drilling target. However, following further seismic work, the Tahi structure has been located and it is proposed to drill this in January. Area 073 in the Taranaki basin is considered to be “very attractive.” It is planned to have a drilling commitment before the licence expires in December. Area 058, offshore Karamea, has the Toropuihi prospect as its first well in which the target depth is 2170 m. The licence requires a well to be drilled by this November, but the Ministry of Energy has indicated an •extension, provided a commitment is made. Cultus, the operator, is negotiating a drilling arrangement.