21/09/2011
STP Wants More Time for Awakino South Appraisal
According to the government’s New Zealand Petroleum and Minerals unit, STP has applied for a four-year “Extension of Duration Discovery Appraisal” for its exploration lease PEP 38479 that it won in September 2002. The second term of the 864.1 square kilometre licence is due to expire in September 2012.
The NZPM unit says current work program obligations include committing to drill a second exploration well in the lease or surrendering the acreage.
Earlier this year there were rumours of STP wanting to drill that second well but being constrained by a lack of availability of a suitable rig.
The only offshore vessel likely to be in New Zealand waters in the near future is the Noble Discoverer drillship after it returns from certification work in dry dock in Brisbane. It is then scheduled to restart the suspended Ruru-1 well on the edge of the Maui gas field for operator Shell Todd Oil Services.
It is known New Zealand Oil & Gas may afterwards utilise the drillship to drill the Kakapo-1 well in offshore Taranaki lease 51311.
However, it is not known if the drillship will be suitable to drill a second shallow water well in STP’s lease. This is one reason for STP to ask for an appraisal extension until a good semi-submersible or jack-up rig becomes available, perhaps during the 2012-13 summer or even later, when the Kupe partners and/or the Maari partners plan to drill more exploration or development wells in their respective offshore Taranaki gas and oil fields.
In late 2008 STP said it encountered encouraging gas indicators at Awakino South-1, its first New Zealand well, with preliminary analysis of intermediate logging indicating wet gas in the intra-Turi Formation over an interval from about 2810-2913 metres measured depth.
The company said early petrophysical calculations indicated a possibility of 15-34m of net gas pay and it is understood the porosity and permeability rates encountered were good and typical of the tight sands often encountered in Taranaki.
STP then drilled to a total depth of about 3400m to evaluate the deeper Mangahewa Formation but later plugged and abandoned the well. However, industry commentators have told EnergyNewsBulletin Awakino South-1 could be re-entered, offering the opportunity for STP to drill further wells from that wellsite.
Story courtesy of Petroleum News.net