New Zealand Oil & Gas [NZX: NZO], the exploration company, says its total costs for the Pateke-4H prospect in the Tui field off the Taranaki coast will be US$40 million to US$46 million including the tie back to the floating storage/production vessel Umuroa.
Costs of the project include the $25 million for NZOG's share of exploration and drilling. NZOG has 27.5 percent of Tui while operator AWE has 57.5 percent and Pan Pacific Petroleum has 15 percent. The costs "increased beyond the pre-drilling estimate" because of significant extra work to mitigate mechanical difficulties and drill two sidetracks, NZOG said today.
The company's initial evaluation of the resource estimates 2.5 million barrels, of which its share would be 687,500 barrels.
"Preparations are being made to run the completion and suspend the well to enable production in the first quarter of 2015," it said.
Last month, chief executive Andrew Knight told BusinessDesk potential Pateke production would bolster output rather than extend the life of the Tui oilfield.
NZOG's shares gained 1.3 percent to 78.5 cents, and have slipped 3.7 percent this year.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Suburban intensification and sprawl outside city boundary - Unitary Plan
- TradeGecko 'doing millions in revenue' as ex-Kiwi startup builds customers from Singapore
- Punakaiki Fund invests in Taranaki software company
- Unexpected bedfellows emerge in early Unitary Plan reactions
- MARKET CLOSE: Stocks drop, A2 Milk falls ahead of legal challenge, Fletcher Building gains
Most listened to
- The Unitary Plan will change the face of Auckland. NBR reporter Sally Lindsay looks at the changes
- Rabobank's newly appointed CEO Daryl Johnson answers seven key questions on this agriculture industry
- In Editor's Insight, Nevil Gibson examines new revelations about downing of Flight MH370
- InternetNZ boss's two problems with TPP legislation
- Germany’s terror and Turkish torture on Foreign Affairs Scope with Nathan Smith