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Austral Pacific Energy Ltd has reported finding oil bearing sands at a second well drilled in the onshore Taranaki Cheal oil field.
The Cheal B2 well reached a total depth of 1866m a week ago, with indications of oil bearing sands being found at the main and secondary targets, Austral said today.
Cheal B2 is the second of four wells to be drilled back to back from the Cheal B site as part of the Cheal field development.
Three weeks ago Austral announced it had found oil bearing sands in the Cheal B1 well.
Drilling of the Cheal B3 well was expected to start about Friday.
Austral announced the start of an estimated $25 million development of the Cheal field in July, with initial production rates of up to 300 barrels a day, and full production of around 1900 barrels a day expected from early in the second quarter of 2007.
Austral holds a 36.5 per cent interest in the field, which will rise to 69.5 per cent after the completion of its acquisition of Arrowhead Energy Ltd, with Tag Oil holding the balance.
Austral Pacific shares were up 14c to $2.50 around mid-afternoon today, having ranged between $2 and $4.25 in the past year.
- NZPA
