KEY POINTS:
The results of drilling in the Cheal Oil Field in Taranaki suggest the field may be bigger than first thought.
"The (Cheal B4) well confirms the existence of hydrocarbon charge outside the currently recognised limits of the field and as such increases our confidence in the resource potential of the north western extension of the Cheal Oil Field," Austral Pacific Energy said in a statement to the stock exchange.
Cheal B4 reached a total depth of 2900m on December 19. The well is being drilled to get more information about the Urenui, Mount Messenger and Moki sandstones in a separate fault terrace to the north-west of the currently defined limits of the Cheal Oil Field.
The Mt Messenger sands were intersected from 1772m to 1785m and from 1904m to 1944m. These intervals were found to be oil bearing.
Sands from Urenui Formation were intersected between 1460m to 1476m and from 1620m to 1646m. These were also found to be oil bearing.
However, Moki Sandstone intersected below 2407m was saturated with water.
The Cheal B4 well is currently being prepared for later side track operations to target better developed sands near the existing well bore.
Investment company Infratil owns 17.9 per cent of the Austral Pacific.
Austral Pacific chief executive Rick Webber said construction of facilities at the Cheal A site were also making good progress.
"The site foundations are now largely complete and installation of the three large oil storage tanks is complete," said Mr Webber.
"Fabrication of the first of two separator vessels has now been completed."
Austral announced the start of an estimated $25m development of the Cheal field, which is onshore, in July.
- NZPA
