New Zealand Oil&Gas Ltd (NZOG) said oil production from the Tui area oil fields is likely to increase in the December quarter now that the Pateke-3H production well is operating again after being shut-in since late June.The offshore well is one of fou
New Zealand Oil&Gas Ltd (NZOG) said oil production from the Tui area oil fields is likely to increase in the December quarter now that the Pateke-3H production well is operating again after being shut-in since late June.
The offshore well is one of four producing wells in the Tui area oil fields and it encountered problems with its artificial lift system, causing it to be shut-in. Work at the well is expected to cost $US46 million ($NZ60 million), of which NZOG's share will be $US5.75 million.
The work programme was affected by severe weather conditions in the Taranaki basin during the past six weeks, with about 30 percent of work time lost due to weather.
The Tui area oil fields have produced solid results during the July to September quarter, with average oil production rates of approximately 7000 barrels of oil per day, NZOG said.
The restart of the Pateke-3H well is expected to increase the oil production rate in the December quarter.
In July, the operator of the Tui field, AWE Ltd, advised that production from the Tui area oil fields for the year ended June 30, 2010 was 4.83 million barrels. This slightly exceeded the revised forecast for the financial year of 4.80 million barrels.
Total Tui production since the field began producing in July 2007 has now reached 28.2 million barrels.
AWE is forecasting production for financial year ending June 2011 of 2.84 million barrels. This includes an allowance for the shut-in of the Pateke-3H well.
The Tui area oil fields have four producing wells Tui-2H, Tui-3H, Amokura-2H and Pateke-3H.
