Eleven wells in prospect for upbeat NZ Oil & Gas

New Zealand Oil & Gas is to be involved in a programme to drill 11 wells in Australia and New Zealand during its 2001 financial year.

"The prospects to be tested cover a range of objectives ... from appraisal wells designed to increase oil reserves and flow rates from existing production licences, through to wildcat drilling with huge potential," exploration manager Eric Matthews said yesterday.

"This programme represents a substantial increase in the level of drilling activity for NZOG on the back of stronger oil prices and positive outlook for both NZOG and the oil exploration industry as a whole."

In Taranaki, NZOG's programme includes drilling an exploration well near the Ngatoro oilfield and testing the Opito and Tui prospects, which stand out as prime targets.

Recent seismic results at Opito were excellent quality, "which clearly demonstrates truncation of Kapuni Group sands [so-called C, D and F Sands] within the permit area, with large potential at each level" Mr Matthews said.

Planning for drilling at this prospect was under way with the well scheduled for next February.

Seismic data on the offshore Tui prospect was being further analysed to refine depth closure of the Kapuni D Sands target.

NZOG holds 100 per cent of Opito and may farm out shares ahead of drilling.

The company and its partners in the Tui prospect plan to farm out once analytical studies are completed, and to coordinate with other offshore drilling.

In Australia, NZOG said the focus would be on the offshore Carnarvon Basin, where its subsidiary would drill the Tusk oil prospect in August.

Tusk is positioned between the recent Corvus gas find and the recent Oryx oil discovery.

This well will be followed by extensive seismic surveys and drilling in the Chervil oil production licence and adjacent TP7 exploration licence, in partnership with Apache Energy, Santos and Mobil.

A major 3D seismic survey is to start in October to define or upgrade several prospects for drilling over the next year, according to a company spokesman.

"The first new wells in this area are likely to be a Chervil-7 well to target undrained oil within the Chervil field, plus two wildcats to test the presently undrilled Immortelle and Caraway prospects, in October."

NZOG's interests in the wells in this area range from 4.16 to 22.17 per cent.

NZOG shares closed up 3c at 29c yesterday.

- NZPA