AUCKLAND, 20 June 2000 – Fletcher Challenge Energy has achieved further excellent flow test results from the Pohokura-2 well confirming the significance of the gas and condensate discovery.

The well was perforated from 3582.0 metres to 3603.0 metres along hole during the weekend and subsequently cleaned up and stabilised. The main flow period commenced at 7.45am on Monday 19 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
26/64 12.7 83 4135 2% 6%
40/64 22.8 86 3219 2.5% 6%
64/64 30.7 87 1938 1.5% 6%

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

These gas flow rates were achieved with both DST-1 and DST-2 intervals open, however production logging tools determined that the flow from the DST-1 interval was negligible. As a result the flow is entirely attributable to the DST-2 interval. The maximum flow of 30.7 million standard cubic feet per day was limited by the capacity of the test equipment on the rig. Based on the flow rate and the very limited pressure draw-down between the reservoir and the well head the absolute open flow potential is assessed to be up to 5-10 times greater.

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.

“These test results are fantastic news for Fletcher Challenge Energy. They will lead to a very significant upgrade to the Pohokura reserve estimates. This will help underpin a sustainable gas supply for New Zealand’s future,” Mr Greig Gailey, Chief Executive, Fletcher Challenge Energy said.

“It is a credit to the multi-disciplinary teams involved that this Pohokura exploration project has delivered such an excellent result. The completion of the first appraisal well within three months of discovery is a record in the New Zealand offshore oil and gas industry and an outstanding achievement by international standards. It is a manifestation of our new focus on operational excellence and will become a model for our future operations,” Mr Gailey said.

Fletcher Challenge Energy is currently integrating the test results into its reservoir models and expects to release a detailed range of reserve estimates within the next two weeks. 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 –2 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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