Kupe Oil Production Jacket Lift
30/01/2012
Roc, L&M looking for NZ Partners
In its December 2011 quarterly report L&M said that it and Roc had commenced “a comprehensive farm-out campaign aimed at attracting a drilling partner to the project, with a view to drilling a well in 2012-2013 pending drilling rig availability”.
L&M said reprocessing and interpretation of the previously acquired 3D seismic dataset had been completed and that Roc had mapped Kaheru, the largest well-defined anticlinal prospect within the lease PEP 52181.
L&M also said Kaheru had the potential to contain up to 290 million barrels of oil or up to 576 billion cubic feet of gas with 29MMbbl of associated condensate and multiple reservoir targets. The permit also holds additional follow-up prospects and leads, including the Rewa prospect to the northwest of Kaheru.
The PEP 52181 partners are operator Roc Oil (50%), Canadian listed junior TAG Oil (20%), L&M Energy (15%) and AGL Upstream Gas (15%).
In other news L&M said it was re-equipping and bringing back into production its OM-5 appraisal well in the coal seam gas exploration lease PEP 38220 (Ohai) in Southland.
However, as current production rates were lower than originally modelled, the company would only commit to the remaining large capital expenditure items for the associated pilot power station on the basis of a positive outcome from the on-going testing program.
But L&M did announce some encouraging initial results from its onshore Otago coal seam gas exploration lease PEP 38219 (Kaitangata).
While the Wangaloa-1 well was suspended at 507m, the limit of the drilling rig’s depth capacity, Lockington-2 reached a total depth of 315m after intersecting approximately 8.6m of cumulative coal across four coal seams. A total of thirteen cored coal samples were taken for further analysis, including measurement of gas content and saturation levels.
Another two stratigraphic wells, Kai-21 and Kai-22, were also drilled, with Kai-21 confirming 17.4m of net coal in three seams between 63.40m and 84.65m that correlated with the Kai Main and Carson seams.
Kai-22 reached a total depth of 166m, with 17.6m of coal encountered in the lower seams between 136m and 158m. These seams also correlated with the Kai Main and Carson seams to the south. The stratigraphic wells were located to the north of the coal field so as to determine the aerial extent of the Kai Main and Carson seams.
The drilling rig was demobilised late last month but will likely recommence its exploration program of the five sub-bituminous coal horizons – Capstick, Jordan, Kai Main, Carson and Shore – next month.
L&M reported that it had about $NZ2.153 million ($A1.665 million) available at the end of the quarter to undertake future work programs.
Story courtesy of Petroleum News.net