Kea discovers oil-bearing sands at Wingrove-2

Sources: Kea Petroleum and Lindsay Clark

The New Zealand-focussed and UK-listed company said it had identified a net total of approximately six metres of high quality but relatively thin oil-bearing sandstones over a 200 m interval from 1,100 to 1,300 m depth along hole. This was based on analysis of electric log, rock cuttings and mud log data.

Kea said that below 1,450 m the presence of oil was indicated by the very high levels of hydrocarbon gasses consisting of discrete gas peaks superimposed on a high and continuous background level. A pervasive oil sheen was observed on various cuttings samples over this interval.

Kea said this is considered to be indicative of oil in open fractures in the vicinity of the well-bore. Most probably these are associated with mapped faults which plumb down through the reservoir sequence of the adjacent and deeper oil field.

This deeper interval will also be tested in the upcoming production test programme, Kea said.

The company said it will now specify and procure necessary surface and down-hole equipment for long term production and sale of oil.

This will include custom designed down-hole heating equipment to ensure flow integrity of the anticipated high pour-point oil, and gas 'frac' equipment to enhance the flow capability of the high quality but individually relatively thin reservoir sandstone beds.

Kea anticipated that production testing will commence within the next six months.

The original Wingrove-1 well flow-tested waxy oil at a rate of 50 bopd.

The Ensign Rig 19 rig will complete Wingrove-2 operations in the next few days, and will then be moved to the Beluga-1 gas prospect well site. The first 300 m of Wingrove-2 was drilled by the smaller Interdrill rig.

Kea chairman Ian Gowrie-Smith said: "We are very pleased to have encountered oil in Wingrove-2, and with a deeper oil production ‘upside’ which will be tested at the time of completion of this well as a producer.

“In a very short time we have gone from an exploration company to one expecting to be in production within the next six months and we still have the rest of our drilling and exploration programme in front of us”, he said.

Kea’s chief executive officer is prominent Wellington petroleum explorer Dr Dave Bennett. Kea is listed on the London Stock Exchange Alternative Investment Market (AIM) where in February the company raised an additional NZ$13 million.

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