Gas shows found at Kea’s Beluga-1 well

Sources: Kea Petroleum and Lindsay Clark

Kea said it had intersected a number of sands with indications of hydrocarbon presence, including a zone which encountered higher pressure.

Gas was detected on the surface and waxy condensate coated the upper parts of the drill pipe, Kea reported.

The well, which reached a total depth of 4,100 m in PEP 51155, is now being prepared for wireline logging.

The wireline logs will enable Kea and its partner Methanex New Zealand Ltd to evaluate the significance of these shows and to make a decision whether to case the well in preparation for flow testing.

Chief executive officer, Dave Bennett said: "We are pleased that drilling has been successfully completed and we now have encouraging indications in the well - not unlike those encountered in nearby producer wells.

“At this stage it is not yet possible to draw firm conclusions as to the quality of what we have uncovered but we will work on evaluating this well and a further announcement will be made upon completion of the electric logging in a few days time."

The Beluga-1 well site is west of the Waitara River near the township of Tarata.

Methanex New Zealand, a subsidiary of Methanex Corporation of Canada, which has two methanol plants in Taranaki, has agreed to fund up to US$10million of the Beluga-1 well drill and completion and to acquire gas from the well.

Kea Petroleum, which is listed on the London Stock Exchange’s AIM board, holds three petroleum exploration permits in the Taranaki and Northland Basins of New Zealand.

Related links

Taranaki Basin - 2010 NZ Petroleum Conference - Request copy of Crown Minerals Annual Report