NZOG says Pateke well reserves smaller than initial estimate

Tuesday 6th January 2015

New Zealand Oil & Gas, the exploration company, says the Pateke-4H well in the Tui oilfield off the Taranaki coast will boost the field's reserves by less than initially thought.

The Wellington-based company and partners AWE and Pan Pacific Petroleum expect the well to lift Tui's recoverable reserves by 2.4 million barrels gross, of which a net 660,000 barrels are attributable to NZOG, it said in a statement. Of that, 1.9 million barrels come from Pateke-4H itself and an additional 500,000 barrels from other Tui areas as a result of extending the field's life.

The initial evaluation of the resource estimated 2.5 million barrels, of which NZOG's share would have been 687,500 barrels.

"The Pateke-4H estimate will be reviewed and updated when the well is on production and actual performance can be compared with the forecast from the current model," the company said. "The effect of Pateke-4H on the extension of the economy field life of the Tui area fields is dependent on oil price, and includes an assumption on a return to higher oil prices during the field life."

Shares of NZOG fell 3.1 percent to 63 cents.

Global oil prices have plunged in recent months, exacerbated by the Organisation of the Petroleum Exporting Countries resisting calls to reduce their supply as they try to protect their position from rival producers.

BusinessDesk.co.nz

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