KEY POINTS:
Reserves in the offshore Taranaki Tui oilfield have been lifted again, with publicly-listed New Zealand Oil & Gas (NZOG) putting the gross value of its share of the increase at around $70 million.
NZOG said today that the initial proved and probable (2P) reserves for Tui had been further increased from 47 million to 50.1 million barrels, following a detailed field reassessment by operator Australian Worldwide Exploration (AWE).
Three weeks ago, NZOG was hosing down expectations after The Australian newspaper reported the reserves were about to be raised, although that report appears to have been overly optimistic saying the reserves could go as high as 55 million barrels.
Today NZOG, which has a 12.5 per cent share of Tui, said its share of the additional reserves was almost 400,000 barrels. Using current oil prices and exchange rates, that had a gross value to NZOG of around $70m.
Today's announcement follows a reserves upgrade last month from 41.7 to 47 million barrels.
Total field production since it started last July 30 until the end of the financial year on June 30 was now forecast to be 14.2 million barrels.
Tui continued to perform above expectations with production so far this month averaging 42,500 barrels per day, NZOG said.
Production for the 2008/9 financial year was now forecast to be 9 million barrels, with NZOG's share of production in 2008/09 forecast to be 1.13 million barrels, an increase of 370,000 barrels.
An additional development well and several near field exploration wells were planned for the Tui fields and the Tui permit area in early 2010, NZOG said.
NZOG chief executive David Salisbury said Tui had exceeded all expectations.
Before production started reserves had been at 27 million barrels, with an expected first year production of 9 million barrels and an international oil price of around US$70 a barrel, he said.
"Less than a year on, the reserves figure has almost doubled, production is about to pass the 14 million barrel mark and Tui oil is selling for over US$130 a barrel."
Along with NZOG, the other participants in Tui are AWE with 42.5 per cent, Mitsui E & P Australia with 35 per cent, and Pan Pacific Petroleum with 10 per cent.
NZOG shares were up 2c shortly before 11am to $1.58, having ranged between $1.67 and 97c in the past year.
- NZPA
