New Todd find boosts reserves

By ELLEN READ and agencies

Todd Energy has discovered what could be the third-largest undeveloped gas field in New Zealand.

Managing director Richard Tweedie said yesterday that the company's Karewa-1 gas field, drilled in January, may hold up to 150 billion cubic feet (bcf) of gas.

Karewa-1 is in about 100m of water off the west coast of the North Island near Kawhia.

Two more wells may be required by 2006 to prove the extent of the deposit, Tweedie said, and a commitment to develop the field was likely in about 2009.

The company plans to gather more seismic data about Karewa-1 and two similar prospects nearby.

"If we can get [a total] 300 to 400 bcf at a P50 level then we've really got something," Tweedie said.

P50 means there is a 50 per cent likelihood that the reserves are larger or smaller, meaning the risk is equal either way.

The country's largest developed gas field, Maui, will run out in 2007, two years earlier than expected, prompting more oil and gas exploration.

Maui provides about 80 per cent of New Zealand's natural gas.

"We have one sizeable gas field [Pohokura] coming into production and no more in sight," Tweedie said.

"Australia has 50 Pohokuras waiting in the wings. The Maui wake-up call cannot be ignored."

Pohokura is New Zealand's largest undeveloped gas field, with expected reserves of about 750 bcf.

Its owners, Shell, Todd and OMV, must have the gas flowing by mid-2006 under conditions set by the Commerce Commission.

The offshore Kupe gas field in Taranaki has about 260 bcf of gas, making it the country's second-largest undeveloped field.

Owned by Origin, Genesis, NZ Oil & Gas and Mitsui, it is expected to come into operation in 2007.