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Austral Pacific well produces from Urenui formation
25 March 2008 - Austral Pacific Energy has begun producing from its first Urenui formation production well at its Cheal oil field in onshore Taranaki.
Austral Pacific said its Cheal-A1 well is expected to produce 500 mcf/d of natural gas and 45-50 barrels of crude oil per day. The well is being brought on-stream slowly and co-mingled with production from the deeper Mt Messenger producing zone.
The Cheal field is currently producing in excess of 700 bopd, in line with the expectations of the existing wells.
Austral Pacific said final design work for two additional wells from the A and B sites is now complete and ready for joint venture approval. Surface casing has been set at the A site and a manifold is in place at the B site to expedite the tie-in of these wells to the Cheal production facility.
The company also confirmed that the final tranche of US$3.9 million had been received for a US$15 million placement.
The majority of the proceeds from the private placement are being used to accelerate the Cheal field development with a goal of increasing the field reserve base and increasing production. The proceeds will also fund other appraisal and development projects in Taranaki including the Cardiff gas field appraisal.
