Local oil stocks jump on Tui find

An exploration well being drilled into the highly prospective Tui licence area has encountered hydrocarbons in the target sands, 12.5% partner New Zealand Oil & Gas announced today. 

"Oil shows were encountered as prognosed over 10 metres in the top of the objective Kapuni F Sands, which have proved productive at the adjacent Tui oilfield," the company said.

"The significance of these shows will be evaluated by wireline logging over the next few days." 

NZOG shares rose 3.7% to $1.41 on the news, while 10% partner Pan Pacific Petroleum shares jumped 16% to 29 cents. 

The Tui SW-2 well is located in mining licence PMP 38158 in the offshore Taranaki Basin, approximately 85 kilometres from New Plymouth and has been drilled to a total depth of 3,749 metres.

The well is one of two to be drilled in the area adjacent to the existing Tui well, which has been producing since mid-2007 and is forecast to yield 4.8 million barrels of oil this financial year.

Other participants in Tui SW-2 are AWE (operator) at 42.5%; and Mitsui E&P Australia, 35%.

Businesswire.co.nz

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