WELLINGTON, New Zealand, July 4 /PRNewswire-FirstCall/ -- Austral
Pacific Energy Ltd. (TSX-V: APX; NZSX: APX)
The current well program was designed to test additional reserve
potential in the greater Cheal area. The locations were chosen, based on
the regional 3D seismic data set to have potential for a thick gross sand
package, above the regional oil water contact.
Cheal-A6 and A6ST wells were targeting a separate lobe of sand from the
main Cheal 'A' Pool, the Cheal-A7 well is classified as a step out well
targeting an extension to the same pool as the successful Cheal A3 and A4
wells.
The company announces that the Cheal-A6 well reached a total depth of
1930m on June 26th, 2008. The well intercepted an oil bearing MM3 Formation
as prognosed at approximately 1818m MD, but the net sand interval was
interpreted from electric logs to be some 2 metres thick, thinner than
prognosed and sub economic to complete and produce.
The Joint Venture (Austral Pacific Energy Ltd 69.5% and TAG Oil 30.5%)
agreed to plug and abandon the MM3 zone in this well bore, set a whipstock
plug at 1359m and kick off a side track well to a targeted location
approximately 150m to the south of the original A6 penetration.
Cheal-A6ST was drilled to a total depth of 1936m on July 2nd, 2008 and
intercepted the targeted MM3 sands as prognosed, well above the regional
oil/water contact, but again, while oil charged they were only some 2
meters thick. After evaluation of all subsurface data the Joint Venture has
agreed to plug and abandon the A6ST well as a sub-commercial hydrocarbon
discovery.
A new whipstock plug will be set in the wellbore and the rig will now
commence drilling the Cheal-A7 well from the same surface location.
Commenting upon the result, Mr. Jewell Austral CEO said, "We were
pleased with proving that the oil water contact encompassed a larger Cheal
field area but very disappointed that the aggregate sand thickness in this
location was too thin to be commercially produced. While we are
disappointed in the results in this well we remain confident in the
ultimate upside potential of the Cheal field development and the Greater
Cheal play trend. We have built well appraisal failures into our overall
planning and remain determined to bring success to the JV and
shareholders."
In other news Austral has been informed by Origin that the Waihapa
Production Station is being temporarily shut down due to inadequate
supplies of gas to the facility from other sources. The Cheal field oil
production produces very small volumes of gas; most of which is used to
operate the plant and generate electricity into the grid. The minor amounts
of residual gas, some 150,000 cubic feet per day, is processed at the
Waihapa Production Facility and sold to Vector and carried to market
through the Vector gas transmission network system.
As a result of the shut down, Origin has now informed Austral that the
processing of raw gas from Cheal into the Waihapa Production Station has
been suspended. Origin has proposed an option to allow the Cheal field to
continue producing at optimum rates and reinject its spare gas into one of
its existing reservoirs. Austral and Origin are working together to
formalize an agreement.
Commenting on the Waihapa Production Station shut down Mr. Jewell said,
"Access to market for both the gas and oil production from our Cheal field
is critically important to the company so we maintain plans to support
multiple contingencies. The field is capable of producing up to 1 million
cu feet of gas per day but currently only 150 thousand cu feet are excess
to the Cheal plant operations. Our current production of 420 barrels per
day continues."
Web site: http://www.austral-pacific.com
Email: ir@austral-pacific.com
Phone: Thom Jewell, CEO +64 (4) 495 0880
None of the Exchanges upon which Austral Pacific's securities trade
have approved or disapproved the contents hereof. This release includes
certain statements that may be deemed to be "forward-looking statements"
within the meaning of applicable legislation. Other than statements of
historical fact, all statements in this release addressing future
production, reserve potential, exploration and development activities and
other contingencies are forward-looking statements. Although management
believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of
future performance, and actual results or developments may differ
materially from those in the forward-looking statements, due to factors
such as market prices, exploration and development successes, continued
availability of capital and financing, and general economic, market,
political or business conditions.
See our public filings at http://www.sedar.com and
http://www.sec.gov/edgar/searchedgar/webusers.htm for further information.
SOURCE Austral Pacific Energy Ltd.
 back to top
Related links:
http://www.austral-pacific.com
CONTACT:
Thom Jewell, CEO, Austral Pacific Energy
Ltd., +64 (4) 495 0880, ir@austral-pacific.com
|
