AWE Ltd. announced on 13 June that drilling began on the Oi-2 exploration well located in Petroleum Mining Permit (PMP) 38158 offshore Taranaki, New Zealand.
The joint venture partners hope the Oi-2 well will allow the evaluation of hydrocarbon potential of a 4-way dip closed structure. This task was proven impossible with its predecessor, the Oi-1 exploration well, due to operational difficulties encountered while setting casing. On 10 June, the Australian operator announced it was abandoning Oi-1 and moving semisubmersible drilling rig Kan Tan IV 150m to an adjacent location.
An estimated 31-day drilling campaign began this morning, local time. Oi-2 will be vertically drilled to a planned total depth of 3881m. Oi-2 is located approximately 12km northeast of the Tui Area Oil Fields in approximately 120m of water. Operator AWE anticipates hydrocarbon discovery from the same F10 reservoir sandstones that produce similar fields Tui, Amokura, and Pateke.
AWE estimates that Oi prospect has a perspective resource base of 11MMbo recoverable. Any subsequent development of the Oi field would involve a tie back to the nearby Tui production facility, the FPSO Umuroa, where sufficient production capacity is available
AWE is participating in the Oi-1 exploration well at a reduced equity of 31.25% and has the option to increase its equity participation in any future appraisal drilling and development to 57.5% by exercising existing buyback provisions.
AWE operates of PMP 38158 with 57.5% equity. Its joint venture partners are New Zealand Oil & Gas (27.5%), and Pan Pacific Petroleum (15%).
In the Oi-1 exploration well, AWE, operator, holds 31.25%. New Zealand Oil & Gas (18.75%) and Pan Pacific Petroleum (50%) round out the joint venture partnership.