$45M oil exploration programme

Press, 9 December 1985, Page 44

$45M oil exploration programme

PA Wellington An intensive $45 millidn/oil and gas exploration programme will be carried out by mid-1987, with up to eight wells to be drilled in the Taranaki prospecting licence area PPL 38034, Petrocorp announced. The programme, to be operated by Petrocorp with jointventure partners, is scheduled to start in January with the drilling of the Te Kiri-1 well in western Taranaki and the Taiki-1 well in the eastern portion of the licence, south of the McKee field. Petrocorp said in a statement that the exploration programme, involving at least two drilling rigs, follows an intensive six-month seismic acquisition programme by Petrocorp in Taranaki, completed in mia-June. A total of 850 km of seismic recording was done in two areas: one from Urenui to Toko and the other covering the western coastal region from Opunake to just south of New Plymouth.

This survey was to identify future exploration well locations and to assist in further -development of the McKee/ Toetoe producing fields. With PPL 38034 in its second five-year period which is due to expire , on June 21, 1987, Petrocorp wanted to accelerate its explbration work before relinquishing the licence to satisfy itself whether hydrocarbons were presenbor not. Petrocorp’s exploration data had already located several geological features that warrant drilling in the licence area. PPL 38034 was held jointly by the Crown (51 per cent) and Petrocorp (49 per cent) and since acquiring the licence area Petrocorp had discovered several commercial oil and gas/condensate accumulations. Exploration activity had continued at a high level and all work commitments for the present term have been met, apart from the drilling of one additional well to more than 2500 m.

“Acceleration of the exploration programme has been made possible by farm out arrangements which will ensure funds are available, while at the same time, providing an opportunity for other companies to participate in the exploration of this prospective region,” Petrocorp said. “Up to eight wells, varying in depth from 3000 m to 5000 m are provided for in the new exploration programme. There wells are designed to evaluate a variety of structural and stratigraphic styles.” After finalising the necessaryxdocumentation, the joint venture would comprise the following, participants: Ministryof Energy 38.36 per cent; Petrocdrp 28.34 per cent; Payzone Exploration 17.50 per cent;Southern Petroleum, NL, 5.10 per cent; Nomeco New Zealand Exploration Company, 5 per cent; Bligh Oil and Minerals, NL, 2 per cent; MIM (New Zealand), Ltd, 2 per cent; Petrocorp Exploration (Taranaki), Ltd, 1.70 per cent.