The two partners in the Puka field in the onshore Taranaki are now looking at development plans following the discovery of significant gas in the recently drilled Pukatea-1 well.
Junior partner Melbana Energy Ltd (ASX: MAY) said in its just-released March quarter report that its partner TAG Oil (TSX: TAO; OTCQX: TAOIF) operated the nearby Cheal field which was less than 10 kilometres from the Pukatea well location.
The joint venture licence, PEP 51153, contains the suspended Puka oil field where drilling back in 2012 saw the Puka-1 and Puka-2 wells producing 100 barrels/day from the Mt Messenger Formation before being shut-in due to the then emerging low oil prices, and mechanical issues.
Melbana said successful production testing of the Pukatea-1 oil zone found in the Mt Messenger Formation has flowed at an initial rate of 600 bbbls/day on a 28/64” choke.
“The oil produced was combined with other oil produced in the area and sold to the market at Brent oil pricing,” Melbana said.
The company said an independent expert values TAG Oil’s 2P reserves in nearby fields at $A20/barrel on an NPV10 basis.
Melbana holds a 30% interest in the Puka field with TAG as operator holding the balance.
Companies mentioned in article