AWE drilling ahead at Pateke-4H, New Zealand

AWE Limited has reported that as of 06:00 hours (6.00am NZDT) today, the Pateke-4H development well sidetrack was at a measured depth of 3,845m, directionally drilling ahead with a 12 ¼ inch drilling assembly.

It is planned to drill this section of the well to a measured depth of approximately 4,110m, landing at an angle of approximately 90 degrees, and then install the 9 5/8 inch casing. The well will then be drilled horizontally through the F10 reservoir to a planned measured depth of 5,361m.

The Kapuni F10 sandstone objective has already been intersected on prognosis with oil shows and real time logging measurements indicating the likely presence of an oil bearing reservoir, which is very encouraging. However, the commercial significance of the oil shows will not be clear until the horizontal drilling has been completed.

The Pateke-4H development well is in PMP 38158 and AWE is the Operator. Located in the offshore Taranaki Basin, New Zealand, PMP 38158 contains the Tui, Amokura and Pateke fields and has been producing since 2007.

Pateke-4H is targeting a mapped northern extension of the currently producing Pateke field. The well is being drilled in water depth of approximately 124m with a planned total measured depth of 5,361m, including a 1,272m horizontal section. If successful, the well will be completed for subsequent tie-back to the Tui FPSO (“Umuroa”) for production in 2015.

The Joint Venture partners in PMP 38158 are: AWE Limited (via subsidiaries) (Operator) 57.5%; New Zealand Oil & Gas (via subsidiaries) 27.5%; Pan Pacific Petroleum (via subsidiaries) 15.0%.

Press Release, March 25, 2014

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