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Carnarvon Petroleum takes step into NZ with 10% of Tuatara-1
26 July 2010 - The Tuatara-1 well, scheduled to be drilled in July just 15 km north of the South Island, has attracted Perth-based Carnarvon Petroleum Ltd as a fourth partner.
Sources: Carnarvon Petroleum and Lindsay Clark
Carnarvon has purchased a 10% equity interest from Tuatara operator AWE New Zealand Pty Ltd which will be drilling the fourth of its offshore Taranaki Basin wells using the Kan Tan IV semi-submersible rig.
The other three partners in PEP 38524 joint venture will comprise of AWE 65%, ROC 15% and KEA Petroleum 10%.
Tuatara-1 will target approximately 80 to 100 mmbbl of potential recoverable oil reserves. The well, planned to be drilled to a depth of 2000 metres, will be located in 50 metres of water, around 15 km offshore from D’Urville Island.
The Tuatara prospect is interpreted to contain Moki sandstone reservoirs typical of a Taranaki Basin-style structural trap.
Seismic expression over the structure is similar to the Maari oil field, the largest crude oil field in New Zealand, 80 km northwest of Tuatara-1.
Carnarvon’s CEO Ted Jacobson said, “New Zealand is one of our favoured places to invest with very good fiscal terms, a supportive Government and certainly within our time zone of operations.”
Mr Jacobson was also a co-founder and recent technical director of Tap Oil Ltd, which was active in New Zealand.
He said fiscal terms in New Zealand are very attractive when compared to Carnarvon’s other regions of focus in SE Asia and Australia, while the country has a very low sovereign risk.
Tuatara-1 is a relatively low risk exploration prospect with an estimated chance of success of about 25%, Mr Jacobson said.
The estimated total cost of the well would be between US$16 million and US$20 million.
More on Tuatara-1 - Current wells & drilling - Petroleum Basins
