Kea announces Taranaki commercial oil find

Kea said it would seek to convert its new onshore oil discovery into a cashflow "as soon as possible". Photo / Thinkstock
Kea said it would seek to convert its new onshore oil discovery into a cashflow "as soon as possible". Photo / Thinkstock

London-based New Zealand oil and gas explorer Kea Petroleum has announced a commercial oil discovery following flow-testing at its onshore Taranaki Puka-1 well, and is to commence a second well quickly to produce early cashflow.

Listed on the secondary AIM board, Kea said Puka-1 had produced a maximum flow rate of 310 barrels of oil per day and 1.8 million cubic feet of gas daily, with a testing programme now determining the best production arrangements for future field performance.

Meanwhile, planning for Puka-2 is well-advanced, and will be a larger capacity rig to allow higher flow rates and greater production flexibility.

The company's Wingrove production facilities will be moved to the Puka site to allow production from Puka-1 to occur without delay following completion of the main build-up phase of the current test, the company said in a statement lodged with the AIM exchange.

"We are delighted that the latest oil and gas flow and down hole pressures data have led to the conclusion that the Puka discovery is indeed a commercial oil field discovery," said chairman Ian Gowrie-Smith.

Kea would seek to "convert this discovery into a cashflow as soon as possible."

- BusinessDesk

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