Sharechat Logo

NZ oil shares fall as Tui SW-2 comes up short

Monday 14th June 2010

Text too small?

Shares in listed New Zealand oil and gas companies exploring the Tui prospect fell immediately the NZX opened this morning, following announcement that "an economic accumulation of hydocarbons is not present" at the Tui SW-2 exploration well.

New Zealand Oil & Gas, a 12.5% partner in the well, fell 2.8% to $1.39, while shares in 10% partner Pan Pacific Petroleum fell 3.7% to 26 cents.

Shares in PPP and NZOG both rose last week when initial drilling reports found hydrocarbon shows.

There had been hopes that a commercially viable 10 metre oil column may have been found.

The well will now be converted to allow gas injection from the main Tui field, as was always intended, NZOG spokesman Chris Roberts told BusinessWire.

The Kan Tan IV drilling rig will now move several kilometres to the south-east to drill the Kahu-1 exploration well for the same partners.

The Tui South West prospect is located in mining licence PMP 38158, adjacent to the producing Tui oil field.

The field operator is ASX-listed AWE Ltd at 42.5%, and Mitsui E&P Pty Ltd is a 35% participant in the two well campaign.

Businesswire.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Debt-free NZ Oil and Gas will use cash buffer as it hunts for oil
NZ Oil and Gas cedes promising Kakapo permit after failing to attract farm-in partner
NZOG chair Griffiths backs director liability over health and safety failures
NZOG in trading halt, Tunisian oil field announcement due
NZOG returns to interim dividends after more than a decade
NZOG's first well outside NZ to spud in late Jan
NZ Oil and Gas buys interests in three Taranaki permits from Octanex
NZ Oil and Gas has $162 million to add oil and gas reserves
NZ Oil and Gas farms out quarter-stake in Kaheru prospect
NZ Oil and Gas misses out on stake in deepwater Taranaki permit