Kea Petroleum plc, the oil and gas company focused on New Zealand, is pleased to announce the following update on the drilling of Puka-3 and on production from Puka-1 and Puka-2.
Puka-3 Well Progress
The Puka-3 appraisal well was drilling ahead at a depth of 839m, at 6:00am New Zealand time on 31 July 2014, following casing at 379m depth. The well is being drilled to a True Vertical Depth of 1,580m (2,280 mMDRT) and is targeting a structure identified by the recent 50 square kilometres of 3D seismic shot by the Company, and confirmed by reprocessing the data by Kea's joint venture partner, MEO.
Puka-1 and Puka-2 were drilled on the basis of 2D seismic data only and now appear to have been drilled on the edge of the Puka field whereas Puka-3 is being diverted approximately 1,475m to the North to target a thicker sand development with a view to increasing accessible net pay from the well. Total depth is expected to be achieved around mid-August.
Puka-1 & 2 Production
Kea is also pleased to report an improvement in oil production, up 48% from average daily production in the second quarter of 2014.
As part of Phase 1 of the MEO farm-in, the down-hole pump on Puka-2 was replaced. Following the resumption of production of Puka-2, combined production from Puka-1 and Puka-2 has been sustained at approximately 110 BOPD. The pump stroke rate and other parameters have been set conservatively and we believe that as long as no further issues are encountered production could be increased significantly.
The permanent pipework servicing production from Puka-1 and Puka-2 wells has now been installed and completes a further part of the MEO New Zealand Pty Ltd Phase 1 joint venture obligations.
During the first half of 2014 a total of 13,565 Barrels of Oil were sold generating US$1,434,273 of revenue. These figures were achieved despite the shut in of Puka-2 due to mechanical failure of the downhole pump.
Ian Gowrie-Smith, Chairman of Kea Petroleum, commented:
"We are pleased that drilling of Puka-3 is progressing safely and on budget. The importance of success at Puka-3 cannot be over emphasised in terms of improved production volumes and economics, but more importantly because we are confident that it will give us a better idea of the reserves and reservoir configuration. We are also pleased to see production starting to return to production figures previously expected."
