Elevated levels of mud-gas have been discovered at TAG Oil's Ngapaeruru-1 exploration well, 20km east of Dannevirke and the situation is encouraging, a company official says.
"We've had to increase the mud weights considerably as we drill deeper and we continue to see rising mudlog gas readings, including the oil-indicative C3-C5 factions, which is encouraging," Drew Cadenhead, TAG's chief operating officer said. "The 'oil kitchen' in these source rocks is definitely working below us. It promises to be interesting drilling over the next couple of weeks.
"We've successfully passed a couple of critical drilling challenges in the Ngapaeruru-1 well now, including cementing intermediate casing across the troublesome Weber and Wanstead formations. We can now drill confidently ahead into the Waipawa and Whangai source rock targets."
However, Mr Cadenhead said the significance of the elevated gas readings will not be known until wireline logs have been run and evaluated. The Ngapaeruru-1 well was spudded on April 22 and while the arrival of the drillers has met with opposition from local Frack Free Tararua and Lock the Gate groups, others in Dannevirke have welcomed the oil company.
"Yes, the oil industry should be regulated, but look at New Plymouth, it's booming. Why can't Dannevirke have boom times too?" Boz Charlton has said.