New Zealand Oil & Gas advises that its Tui-1 well in the offshore Taranaki Basin in New Zealand has encountered hydrocarbon shows in the Kapuni Group Sandstones.
Tui-1 has reached its total depth of 3,903 metres and is currently running wireline logs.
The primary objective of the well, the Kapuni D Sands, was encountered slightly high to prediction but was associated with only minor oil shows and low levels of cuttings gas, which suggests that no producible hydrocarbons are present (this is yet to be confirmed by wireline logging).
However, when the Kapuni F Sands were encountered at 3,655 metres, elevated cuttings-gas and hydrocarbon fluorescence were observed over the uppermost 20metres of the sand. This could indicate producible hydrocarbons, probably gas. Evaluation of the wireline data is required to determine the nature and significance of this interval.
NZOG will make a further announcement to the NZSE and ASX tomorrow after wireline logs become available and have been evaluated.
Prior to drilling NZOG substantially reduced its financial exposure to Tui drilling costs through farmout and now holds a 20% equity in exploration permit PEP38460.
NZOG has a portfolio of other exploration and development projects including the testing and deepening of Tuihu-1, the Ray Prospect where new seismic has been recently acquired, as well as the development of Kupe and Pike River, which are priority objectives for the company. End CA:00086185 For:NOG Type:MINE Time:2003-02-10:10:09:28