Drillers keen on shallower site

By FIONA ROTHERHAM

Fletcher Challenge Energy has plugged and abandoned the deepest section of its wildcat Pohokura well off the Taranaki coast.

Drilling to a depth of 4235m has uncovered non-commercial hydrocarbons at that level.

The shallower part in the Kapuni Sands geological formation is the primary objective of the well.

It is thought the natural gas discovery could contain as much as half a trillion cubic feet of gas.

The company's general manager (New Zealand), Rick Webber, said the next step was a drill stem test this week to show how well the gas flowed to the surface and to better define how much was there.

Development decisions have not been made yet, but another appraisal well is likely to be drilled in mid-April.

If all goes favourably at Pohokura, commercial development could begin within three years. The total cost of development could be between $200 million and $250 million. Drilling costs so far are around $20 million.

Fletcher has a 33.3 per cent stake in Pohokura, as does Germany's Preussag, Shell has 18.3 per cent and Todd Energy 15 per cent.

Pohokura and the onshore Mangahewa find, said to contain 101 billion cubic ft of natural gas, were initially thought to be one field geologically.