CAPITAL: WELLINGTON
MONETARY UNIT: DOLLAR
REFINING CAPACITY: 106,000 B/CD
OIL PRODUCTION: 40,000 B/D
OIL RESERVES: 127 MILLION BBL
GAS RESERVES: 2.45 TCF

Discoveries of oil, condensate, and gas improved New Zealand's energy picture.

With the country's crude and condensate reserves at 127 million bbl, a Taranaki basin discovery by Swift Energy Corp., Houston, could hike reserves 20% by itself, the Ministry of Economic Development said.

Swift Energy's estimate for Rimu field was 20-100 million bbl of oil equivalent. It also estimated the nearby Kauri prospect could contain 200-500 MMboe and the Tawa prospect 100-300 MMboe.

The onshore wells were close to gas and oil infrastructure.

Rimu might surpass McKee, New Zealand's largest oil field with ultimate recovery of 44 million bbl.

Rimu-A1, near Hawera, went to 16,493 ft TD. It cut hydrocarbon shows at 11,795 ft and 13,484 ft in Oligocene Tariki sands and at 13,809 ft in Rimu limestone. The well flowed 1,525 b/d of 44º-gravity oil and 4.8 MMcfd of gas from Upper Tariki at 11,831-962 ft.

Interests in the permit were Swift 90% and units of Antrim Energy Inc., Calgary, and Bligh Oil & Minerals Ltd., Brisbane, 5% each.

Several other discoveries were awaiting development in Taranaki, New Zealand's only producing basin, and gas discoveries had been made on the east coast of North Island.

Also, operator Fletcher Challenge Energy Ltd. said its Taranaki offshore well Pohokura-1 flowed 17 MMcfd of gas and more than 1,000 b/d of condensate from Kapuni group sands. The well, 5 km from shore, was on a structure estimated to be capable of containing 500 MMcf of gas.

Fletcher and partners were considering a second well offshore. They could deviate four wells from shore to develop the field. Pokohura-1 was in 25 m of water 5 km offshore from the Methanex Corp. Motunui methanol plant.

Two other Taranaki offshore oil fields, Maari and Kupe, were awaiting development. Maari was subject to appraisal but thought to hold 20-60 million bbl. Kupe was estimated at 264 bcf of gas and 16.3 million bbl of condensate.

In the East Coast basin, the Westech Energy New Zealand Ltd. and Orion Exploration Ltd. joint venture had gas discoveries near Wairoa-Kauhauroa, Awatere, and Tuhara.

It planned to drill its first offshore well early in 2001 south of Hawke Bay on the east coast of North Island. Tawatawa-1, 12 km south of Cape Turnagain, was to go to 1,700 m in 200 m of water to evaluate Miocene sands.

The joint venture detected 12 prospects each covering 20-90 sq km during a 600 sq km 3D seismic survey in Hawke Bay.

New Zealand Crown Minerals, Wellington, said the drilling location was 12 km northeast of Titihaoa-1, a wildcat Amoco (NZ) Exploration drilled in 1994 targeting a different structure off the Wairarapa coast.

Meanwhile, Pancontinental Oil & Gas NL, Perth, joined the Westech-Orion group for the redrilling of the Waitaria gas prospect onshore in the East Coast basin.

Waitaria 1 failed to reach the Tunanui sands in 1997 because of mechanical problems through a high pressure zone. Despite high mud weights, the well recorded background gas levels up to 1%. Ethane and butane readings were consistently above 100 ppm.

Westech said the well, drilled to 1,372 m, was forced to stop less than 30 m above Tunanui sand. Waitaria 2 would be drilled next to the Waitaria 1 to 1,829 m.

The prospect was delineated by 2D seismic and mapped as a four-way dip closure over 6 sq km. Vertical closure was interpreted to be 700 m and potential recoverable reserves were estimated at 360 bcf. Production likely would go to the city of Gisborne.

Owners were Westech 27.5%, Pancontinental 7.5%, Orion Exploration Ltd. 27.5%, Indo-Pacific Energy (NZ) Ltd. 25%, Sun Resources NL 7.5%, and Everest Energy Inc. 5%.