Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Increase In Reserves For Tui

22 November 2007

Increase In Reserves For Tui

Oil Reserves for the Tui Area Oil Project have been increased to 41.7 million barrels, 30% above the previous estimate and nearly 50% above pre-development predictions.

The new figure for proved and probable (2P) reserves compares with estimated reserves of 27.9 million barrels on which the Tui Area Oil Project in off-shore Taranaki was first sanctioned, and an interim re-estimate of 32 million barrels following completion of the development drilling campaign.

New Zealand Oil and Gas Ltd (NZOG) has a 12.5% share of the Tui Area Oil Project. NZOG’s share of the reserves has increased from 3.5 million barrels (pre-development) to 5.2 million barrels.

Tui oil is a light sweet crude that is generally sold, with freight and quality differentials, against the Tapis benchmark crude, which has recently surpassed US$100 a barrel. The reserves upgrade for NZOG of 1.7 million barrels, at current oil prices and exchange rates, has a gross value of more than NZ$200 million.

The increase in reserves follows a reassessment of the field by the operator (AWE) based on interpretation of re-processed 3D seismic, a more detailed assessment of the Kapuni reservoir and the integration of the production data from the fields since production began on 30 July 2007. The increased reserves assume production from the existing four wells, plus the completion of an additional development well in the Tui oil field, Tui-4H. Preliminary planning for drilling of this well has begun, with drilling targeted for 2009.

Since the start of production on 30 July 2007, the Tui Area Oil Project has produced approximately 4.4 million barrels of oil. Recent production rates of up to 50,000 barrels of oil per day have been achieved, with the current well capacity still substantially higher than the processing capacity of the FPSO Umuroa. Water is being produced from the field, but at substantially lower rates than expected. Based on the current reservoir and facility performance and the upgrade in reserves, AWE has revised the Tui gross oil production for the year to 30 June 2008 up from 10 million barrels to approximately 11 million barrels (approximately 1.4 million barrels net to NZOG).

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Dump Levy Options: Waste Work Programme Announced

Associate Environment Minister Eugenie Sage has announced a programme of work to take action on New Zealand’s long-neglected waste problems. More>>

ALSO:

Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>

ALSO:

Nine Merger: Fairfax Slashes Value Of NZ Business

Fairfax Media Group more than halved the value of its Kiwi assets, attaching just A$40 million to mastheads that were once the core of a billion dollar investment. More>>

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>

ALSO:

Price Of Cheese: Fonterra CEO Goes Early After Milk Price Trimmed

Aug. 15 (BusinessDesk) - Fonterra Cooperative Group chief executive Theo Spierings is leaving the role early after the world's biggest dairy exporter lowered its farmgate payout and trimmed its dividend to retain cash. More>>

ALSO: