(4/30/2002 - Oil & Gas Industries: Perth) New Zealand Oil & Gas reported today that it has commenced drilling its Opito-1 exploratory well on the PEP 38729 Block upshore from the Taranaki Basin on the coast of New Zealand's North Island. It is the first exploratory well in the license area. Opito-1 was spudded a few days ago and is now drilling ahead toward its targeted Kapuni C sands at a depth of approximately 9,350 ft, within a closure estimated to be more than 44 sq km. Potential recoverable oil within the mapped closure is believed to be about 200 million bbl.
Over 400 meters of Kapuni C sands, with good oil shows throughout, were encountered in the 1993 Waihi-1 well, some 20 km to the southwest. Seismic amplitude mapping demonstrates that a similarly developed sequence of Kapuni C sands may be expected in Opito, the company says. The Opito prospect is structurally high to Waihi-1 in a regional culmination against the overthrust that forms the eastern margin of the Taranaki Basin.
The nearest field to Opito is 50 km to the southwest, the Pohokura gasfield, which also draws from the Kapuni C Sands reservoir. NZOG expects to reach its target in mid-May. Participants in Block PEP 38729 are the operator Petroleum Resources (New Zealand Oil & Gas) with 75% interest, and Origin Energy with 25% interest.
