Canada-based Tag Oil has commenced civil works to upgrade road access and drilling pad to support the drilling of the Pukatea-1 exploration well onshore New Zealand in the third quarter of 2017.
Located in the Taranaki basin, the well is within the PEP51153 permit area which is a joint venture between Tag (70%) and ASX-listed Melbana Energy (30%).
Webster Drilling's Nova-1 rig has been hired to drill the Pukatea prospect, scheduled to commence late October, early November.
Melbana said Pukatea is a mature high impact exploration opportunity, targeting a highly productive conventional reservoir ranging from 1.3-40 MMboe and with a best estimate of 12.4 MMboe.
Moreover, the prospect is well located, being proximal to existing infrastructure with a number of potentially near-term low-cost alternative development paths.
Melbana estimates that a successful Pukatea-1 exploration well result consistent with the best estimate of 12.4 MMboe would result in a three well development plan with a gross production plateau ranging between 6000-10,600 bo/d for four years.
A very low development cost production of oil and associated gas is expected to be processed locally using existing underutilized or new infrastructure and sold into oil exported and natural gas markets. The PEP51153 permit covering 85sq km is located to the east of Tag’s producing Cheal field and its nearby production complex.
Three wells have been drilled since the Puka oil field was discovered in 2012, with the Puka-1 and Puka-2 wells producing 100 bo/d from the Mt. Messenger formation before being shut in due to low oil prices and mechanical issues.
“The Pukatea prospect is a deeper Tikorangi Limestone target situated directly below the Puka oil pool. The production capability from the Tikorangi Limestone has been well proven at the adjacent Waihapa oil field which has produced in excess of 23 MMbbl of oil to date,” Melbana said in a statement.
“The Douglas-1 well drilled in 2012 at the edge of the Pukatea prospect encountered a 145m of reservoir interval and oil shows in a down-dip location, with more than 350m of up-dip potential estimated,” it added.
Image: Map of PEP51153 permit / Melbana
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