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First Pohokura Flow Test Successful

Auckland – 14 June 2000 - Fletcher Challenge Energy today announced that it had successfully completed the first of two planned flow tests on the Pohokura-2 well and achieved excellent flow rates.

The well was perforated from 3614m to 3632m along hole at 10am on Sunday 11th June and subsequently cleaned up and stabilised. The main flow period commenced at 7.40am on Tuesday 13th June. Three separate flow tests were conducted with preliminary results as follows:

Choke size
(inches) Gas Flow Rate
(mmscf per day) CGR* (bbl/mmscf) FTHP*
(psi) BS & W CO2
20 / 64 6.8 75 3680 3% 5%
30 / 64 11.3 79 2730 5% 6%
56 / 64 18.4 89 1370 6% 6%

* Note: CGR = Condensate to Gas Ratio
FTHP = Flow Tubing Head Pressure
BS & W = Basic Sediment and Water

The well is currently shut in for a pressure build-up survey, a further part of the testing programme that measures the recovery response of the reservoir.

“This is an excellent result from this moderate quality interval within the reservoir. Both the flow rates and the condensate-to-gas ratio are better than the best seen from the Pohokura-1 well. These results are clearly beyond our pre-drill expectations and have positive implications for field reserve estimates.” Mr Greig Gailey, Chief Executive, Fletcher Challenge Energy said. “We are now preparing to move to the second flow test, in what appears to be very good quality reservoir”.

The second test should be conducted on Saturday 17th June with results released on Monday 19th June. Being purely an exploration well, and therefore not optimally located for long-term production, the Pohokura-2 well will be plugged and abandoned following completion of the testing programme.

The Pohokura–1 well is operated by Fletcher Challenge Energy (33.3%) on behalf of the PEP 38459 Joint Venture comprising co-venturers Preussag Energie (33.3%), Shell Petroleum (Mining) (18.3%) and Todd Petroleum Mining (15%).

ends

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