AWE Commits to Nine Wells Offshore NZ over Next Year

Sydney-based explorer, Australian Worldwide Exploration Ltd, has committed to participating in drilling nine wells in New Zealand from the third quarter of 2006 to halfway through 2007.

AWE, operator of the Tui field development and active explorer in offshore Taranaki west of the Maui field, will also be participating in the first offshore well to be drilled in South Island's Canterbury Basin for over 20 years.

The Diamond Offshore semi-submersible drill rig Ocean Patriot, which drilled Tawatawa-1 for Tap Oil on the East Coast in 2004, will drill all the wells in the expanded exploration programme.

AWE said this will be the company's largest ever drilling campaign.

The first well drilled in the programme will be the exploration well Cutter-1 in the Tap Oil-operated PEP 38259 in the southern Canterbury Basin. AWE has a 25% carried interest in the moderate depth well.

Then the rig will move back to offshore Taranaki for the remaining four exploration wells and four development wells for the Tui Area field. All eight wells will be operated by AWE.

The first Taranaki well for the Ocean Patriot will be the Hector-1 exploration well in PEP 38483 (AWE operator; 44.3% equity). This is planned for in the fourth quarter this year.

This will be followed by the four Tui development wells (PMP 38158) from the fourth quarter 2006 to the first quarter of 2007.

Then AWE will drill two more exploration wells in the Tui mining permit area, Tieke-1 and Taranui-1, in the second quarter of 2007.

The programme is planned to conclude with the West Cape-1 well in PEP 38481 (AWE, operator; 40% equity).

AWE managing director Bruce Phillips said this will be the largest drilling campaign in AWE's history and will be a significant investment in the company's future growth.

“The environment for offshore drilling rigs has changed dramatically recently and long commitment times are now becoming a reality.”

After the New Zealand campaign ends, AWE will take the same rig for a further three wells in the Otway Basin west of Melbourne.