Oil companies' shares take a hit with well result
Oil companies' shares listed in the New Zealand market took a blow after it was announced promising oil shows encountered at the Tui SW-2 offshore exploration well found no commercially significant oil accumulation.New Zealand Oil&Gas (NZOG), which ha
Oil companies' shares listed in the New Zealand market took a blow after it was announced promising oil shows encountered at the Tui SW-2 offshore exploration well found no commercially significant oil accumulation.
New Zealand Oil&Gas (NZOG), which has 12.5 percent stake in the project through its subsidiary Steward Petroleum, opened 4c lower at 139 following the announcement, and fell another 2c to 137 early afternoon.
Pan Pacific Petroleum, which has 10 percent stake, also fell 1c to 26.
Operator AWE Ltd said last week it had found oil shows adjacent to the producing Tui field in the offshore Taranaki Basin. The oil shows were encountered over 10 metres at the top of the Kapuni F sands. Tui SW-2 is located in mining licence PMP 38158 in the offshore Taranaki Basin.
AWE said the significance of the shows would be evaluated by wireline logging.
NZOG today said wireline logging was continuing, but AWE advised that an economic oil accumulation is not present at the Tui SW-2 well location.
At the conclusion of drilling, Tui SW-2 will be cased and suspended as a possible future gas injection well.
Immediately following completing of operations at Tui SW-2, drilling rig Kan Tan IV will move a few kilometres northeast to drill Kahu-1 well.
AWE has 42.5 percent stake in the permit and Mitsui E&P Australia Pty 35 percent.
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