New drilling round under negotiation

Press, 30 August 1984, Page 26

New drilling round under negotiation

By

MARTIN FREETH

Oil exploration companies are negotiating to bring a rig to New Zealand for a second round of offshore drilling this summer. Plans have yet to be finalised but a new programme would be almost certain to include the two further wells which, it was announced earlier this month, would be drilled in the offshore Taranaki PPL 38114 area where a noncommercial oil find was made in Moki I last December.

This area is the one of greatest interest in the oil exploration industry and among the investing public as it was there that the only oil discovery was made in the nine holes drilled in New Zealand waters between last October and July. The partners in 38114, for which the British company Tricentrol, is the operator, have until September next

year, under the terms of their licence, to complete 1 the two wells. The precise 1 locations have yet to be ’ announced. Another area likely to be ... included in any programe is PPL 38049, off north Taranaki, where Petrocorp (Exploration), as the operator, has announced one well will be drilled. A Petrocorp spokesman said yesterday discussions were going on with a num- ,'v ber of contractors overseas •< towards securing a rig. He confirmed that one ■ possibility was the Diamond M. Epoch rig, understood to - be in Bass Strait. ** The area has been drilled once before, in the early „ v 1970 s when the Turi I well proved dry. Partners in the ■" area with Petrocorp are " Shell, BP and Todd, and their licence is due to ex-;,,' pire late next year. The BP-Shell-Todd consortium may also be in -nc volved in a new programme:: with a further well on the Clipper prospect, off south ' Canterbury, where if the " licence is to be retained a;; second hole must be drilled •' by next April. ~ The Benreoch rig drilled? Clipper I in PPL 38202 > • earlier this year. Deep ’ shows of gas were found but • were non-commercial and the hole was abandoned in - June. ’

Another possibility for in- “ elusion in the programme is?' the area off Karamea where ? the Kongahu I well was?, drilled before the Benreoch u left for Britain in July. «■ Process in putting to-., gether a drilling pro- " gramme involves both . securing a rig overseas and* negotiations between the* various consortiums on“ sharing the massive cost” involved.