AWE: Drilling continues at Pateke-4H, New Zealand

AWE Limited reports that as at 6:00 am NZDT today the Pateke-4H development well was at a measured depth of 3,863m and drilling ahead on the planned trajectory with an 8 1/2 inch drilling assembly after successfully side-tracking from the 9 5/8 inch casing at 3,587m.

The second sidetrack (ST-2) will be drilled to a depth of approximately 4,055m and intersect the F10 reservoir at a horizontal angle of approximately 90 degrees. Drilling will continue through the F10 reservoir section to a planned total measured depth of 5,381m, following which a 6 5/8 inch production liner will be installed.

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. The commercial significance of the oil shows will not be clear until the horizontal drilling is completed and the reservoir size and quality is fully assessed.

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 5,381m, including a 1,326m horizontal section. If successful, the well will be completed for subsequent tie-back to the Tui FPSO (“Umuroa”) for production in 2015.

Press Release, April 22, 2014

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