Tag Oil (NZ) Ltd, a wholly owned subsidiary of Tag Oil Ltd, spudded the Pukatea 1 deviated oil exploration well in PEP 51153, Taranaki Basin, on 24 January 2018. The well reached a total depth of 3,100 m in late February 2018 and the rig released on 4 March 2018. On 26 March 2018 Tag reported that the well flowed fluids at a rate of 600 b/d during clean-up operations following the perforation of a 12.9 m interval of the Miocene Mount Messenger Formation secondary target.Â  The well demonstrated a stabilised flow rate of approximately 276 boe/d (74% oil) on a 24/64â choke during a 12-hour test. Testing continued during mid-April 2018, with all recovered oil being sold to the market at Brent pricing.  On 6 March 2018 joint venture partner Melbana Energy reported that a downhole obstruction had prevented the acquisition of wireline logs over a section of 8-1/2â open hole. The well was subsequently plugged back to inside the 9-3/5â casing and a completion string run over the secondary target Mount Messenger Formation oil zone. A future production test of the Mount Messenger Formation is planned to determine reservoir deliverability. Tag earlier reported that the well had failed to encounter the Tikorangi Limestone primary target, instead intersecting a thickened interval of basement rock. Wireline logs were planned to be acquired to determine the significance of intermittent hydrocarbon shows observed between 2,520 and 2,680 m.   The Miocene Mount Messenger Formation was encountered 2 m high to prognosis. The 10.4 m (13.7 m measured thickness) potential gross pay zone (4.5 m true vertical thickness net pay) in the formation was intersected at 1,618 m, within which at least one potentially oil charged interval with movable hydrocarbons has been identified. Wireline data acquired over the interval indicated excellent reservoir properties. The operator reported maximum total gas readings of 19.2% and good oil fluorescence over the interval which contains clean sands comparable to that intersected at the Puka 2 appraisal well, drilled in 2012. Success in the shallower Mount Messenger Formation may now support a re-start of production at the Puka field.    Pukatea 1 was planned to be drilled to a total depth of approximately 3,170 m by the âNova 1â rig. The Late Oligocene to Early Miocene Tikorangi Limestone formed the primary target, expected to be reached in 33 days from the date of spudding. Previously named âShannonâ, the well targeted the Tikorangi Limestone within a thrust related antiform related to graben inversion. Following a reassessment of the well objectives, the shallower Miocene Mount Messenger Formation intersected at the Puka 1 discovery formed a secondary objective. The changes to the well objectives resulted in the requirement for an additional casing string to isolate the Mount Messenger Formation and additional wireline logging being added to the work programme. The well budget was consequently revised upward to approximately AUD 7 million (NZD 7.7 million).  The Pukatea prospect is analogous to the Waihapa field to the west, discovered in August 1985 and is up-dip of oil shows that were encountered within the 2012 Douglas 1 well. The chance of success for Pukatea 1 was estimated at 19% with best case prospective resources of 12.4 MMb oil. The high and low case estimates were 40 MMb and 1.3 MMb oil respectively.Â  Had a success been made, the joint venture report that development costs would be low, estimated at AUD 30 million (NZD 33.2 million), with plans for a tie-back to the Waihapa production facilities via a three-well development.Â  A forecast production plateau of between 6 and 10.6 Mbo/d could have been expected via the planned development scenario, over a four year period.   The well met the work commitment for the final term period of the permit, with the well required by 23 February 2018. Site preparation, which included road and wellpad upgrades, was reported to have been completed by early September 2017. Â   PEP 51153, which covers an area of 85 sq km, was awarded on 23 September 2008.Â  Participants in the permit are Tag Oil (NZ) Ltd (70% + Operator) and Melbana Energy Ltd (30%).
Pukatea 1 deviated oil exploration well in PEP 51153, Taranaki Basin, on 24 January 2018. The well reached a total depth of 3,100 m, well flowed fluids at a rate of 600 b/d during clean-up operations following the perforation of a 12.9 m interval of the Miocene Mount Messenger Formation secondary target.  The well demonstrated a stabilised flow rate of approximately 276 boe/d (74% oil) on a 24/64â choke during a 12-hour test.