Kaheru farminFARMIN OPPORTUNITY
New Zealand Oil & Gas Ltd and Tag Oil Ltd are offering interested companies an opportunity to join them in the execution of their work program in PEP 52181 (Kaheru), in the offshore Taranaki Basin, New Zealand. Up to 25% equity is available in return for a cash consideration and promoted carry on future drilling.
- West coast of the North Island, New Zealand
- South of Kauri field and east of the Kupe field
- Area 312 km2
- Shallow water ~25m suitable for Jack-up
- Suitable rig in NZ waters late 2015
- Recent reprocessed and interpreted 3D seismic
- Granted 19th May 2010 (2 x 5 year duration)
- Permit in good standing
- NZOG 35% (Operator) TAG 40%; Beach 25%
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REGIONAL SETTING
The Taranaki Basin is characterised by its variety of play types, mostly structural in nature. A Miocene compressional phase following Late Cretaceous rifting produced most of the structures, currently trapping hydrocarbons at several stratigraphic levels.
A number of plays along the eastern side of the Taranaki Basin are associated with thrusted structures of the Tarata Thrust Zone, as productive at McKee, Tariki, Ahuroa, Waihapa and Ngaere fields (combined UUR >450 mmboe).
Edge-thrust and sub-thrust traps have been the primary target of several successful exploration programs in the eastern Taranaki Basin, including wells drilled at the Rimu and Kauri fields 10km north of the Kaheru Prospect. Thrust repeat sequences below the basement edge leading to separate accumulations.
Source rocks are found in Late Cretaceous – early Paleogene terrestrial and marginal marine clastics. Kaheru is located in an oil-prone basin.
Reservoir potential includes the Miocene Kauri Sandstone and Moki Formation and seals are provided by regional mudstones of the Otaraoa and Manganui formations. Trap styles are sub-thrust structural rollovers and combination structural / stratigraphic trapping of submarine fan channels.
KEY PERMIT FEATURES
- PEP52181 (Kaheru) has good 3D seismic coverage, with 2D Transition Zoneseismic data providing well ties to producing onshore fields.
- The Kaheru Prospect is on trend with the Rimu and Kauri fields on a highly prospective trend (UUR >450 mmboe).
- The Prospect has been de-risked by high end processing and structural interpretation.
- The Permit has just been granted its second 5 year term.
- One well must be drilled by May 2016 and the Joint Venture is in discussions to contract a jack-up rig to drill the Kaheru Prospect.ff
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KAHERU PROSPECT
The Kaheru Prospect is located on a prolific hydrocarbon trend, with multiple oil and gas fields located to the north, with the closest of those being the Kauri, Rimu & Manutahi fields <10 km away.
The Kaheru Prospect is a >13 km2 compressional anticline mapped on 3D PSDM seismic data. The Prospect is located down-plunge from Rimu-Kauri.
Multiple reservoir targets are identified and have been significantly de-risked following extensive study including reverse time migration reprocessing, structural modeling and detailed sedimentological analysis of offset well data.
The primary target is the Tariki Sandstone (~3700 mTVDSS at crest & ~13 km2), which was deposited in a submarine fan environment and is proven an attractive target along strike. Tariki-1 logs show porosities of up to 18% and permeabilities of up to 130 mD.
The secondary target is the Kauri Sandstone (~3000 mTVDSS at crest ~10 km2) which is interpreted to be located up depositional dip of the Kauri Field in a high energy shore-face environment, thus good sand quality is envisaged at the Prospect There are additional potential possible in Miocene shallow marine sandstones, and in Cretaceous sandstones.
The primary Tariki Sandstone target has been estimated to hold the potential to contain mean recoverable resources (unrisked) of 45 mmbbl of oil in an oil case, or 200 bcf of gas and 7.5 mmbbl of condensate in a gas case.
As the Prospects are located in shallow water (<25m), and in proximity to land-fall, a discovery could be developed with well-head towers, pipeline to shore and on-shore processing, storage and load out facilities. It is likely that such arrangements could be put in place via existing onshore facilities, particularly those that are connected into existing gas pipeline networks.
The Joint Venture has committed to drilling the well and a suitable rig will be in New Zealand waters in 2015.
PERMIT WORK PROGRAMME
KEY POINTS ON NEW ZEALAND
- Low sovereign risk: supportive government regulator and free and easy access to technical data.
- Excellent fiscal terms: simple royalty + tax system with total government take of ~42%.
FARMOUT PROCESS
- Interested parties will be required to execute a CA prior to receiving detailed technical information
- Initial online dataroom opens for review: Now
- Physical datarooms available from : Now
- Offers capable of acceptance (subject to final documentation) sought by: Now
COMPANY INFORMATION
- New Zealand Oil & Gas, listed on both the NZX & ASX (code: NZO), is New Zealand’s largest listed E&P company and has been operating for more than 30 years. It has a strong balance sheet from its share of two major producing assets (net 2P reserves ~10 mmboe) and holds a portfolio of opportunities in New Zealand with multiple near term drilling targets and long term running room.
- TAG Oil Ltd. Is listed on the TSX (code: TAG) and is a high-growth, profitable oil and gas producer with high impact oil and gas exploration activities in New Zealand. Complementing the proven reserves and long-term cash flow the Company enjoys in the established Taranaki Basin, TAG Oil is also targeting oil-rich shales that are widespread across New Zealand's East Coast Basin.
CONTACT DETAILS
For more information regarding this opportunity please contact:
Chris McKeown
Business Development Manager
New Zealand Oil & Gas Ltd
chris.mckeown@nzog.com
D: +64 4 495 2410
M: +64 21 344 953