Kea Petroleum PLC Operational Update (9220M)
24 September 2012 - 4:01PM
UK Regulatory
TIDMKEA
RNS Number : 9220M
Kea Petroleum PLC
24 September 2012
For Immediate Release 24 September 2012
Kea Petroleum plc
("Kea" or the "Group")
Operational Update
Puka field is a commercial discovery
Production Test proves commercial discovery
Kea Petroleum (AIM:KEA) is pleased to announce that additional
flow test and down hole pressure gauge data have confirmed that the
oil and gas reservoir accessed during the initial test of Puka 1 is
of commercial quantity. The initial build-up data established by
downhole pressure gauges have confirmed that no confining
boundaries have been observed. The Maximum flow rate of oil
achieved was 310 barrels of oil per day (BOPD) and of gas was 1.8
million cubic feet per day (MMCFD).
The testing program is continuing with choke sizes being varied
to determine the optimum production parameters for future field
performance.
Drilling of Puka 2 to commence as soon as possible.
Following the encouraging test results from Puka 1, the Company
has decided to proceed to drill a follow up well, Puka 2, as soon
as possible. Planning for Puka 2 is well advanced.
Puka 1 was drilled with a small rig and primarily designed as a
low cost slim hole exploration well and is not ideal for
production, as it limits production rates, completion and
production options. Puka 2 will be drilled by a larger capacity rig
and has been designed as a conventional larger diameter production
wellbore that will allow for higher flow rates and flexibility with
completion and production.
The Wingrove production facilities will now be moved to the Puka
site with installation work being undertaken during the drilling of
Puka 2. This approach will allow testing to commence at Puka 2
immediately following drilling and for production to commence at
Puka 1 without any delay following the completion of the main
build-up phase of the current test.
Planning is also advanced for a Puka 3D seismic survey with long
lead items purchased so that the survey can be acquired over the
upcoming New Zealand summer. This will assist management to locate
future drilling targets.
Ian Gowrie-Smith, Kea's Chairman, commented:
'We are delighted that the latest oil and gas flow and down hole
pressures data have led to the conclusion that the Puka discovery
is indeed a commercial oil field discovery. The commitment to drill
Puka 2 and the move of Wingrove production facilities to the Puka
production site emphasises our intent to convert this discovery
into a cash flow as soon as possible"
This release has been approved by director Richard Parkes, who
has consented to the inclusion of the technical information in this
release in the form and context in which it appears.
To learn more about Kea Petroleum, visit: www.keapetroleum.com
or contact:
Kea Petroleum plc Tel: +44 (0)20 7340 9970
David Lees, Executive Director
RBC Capital Markets Tel: +44 (0)20 7653 4000
Matthew Coakes
Daniel Conti (NOMAD)
WH Ireland Limited Tel: +44 (0)20 7220 1666
James Joyce
Jasper Berry
Buchanan Tel: +44 (0)20 7466 5000
Tim Anderson
Sophie Cowles
Notes to Editors:
Kea Petroleum is an AIM listed oil and gas exploration company
with interests in four petroleum exploration permits in the
Taranaki Basin of New Zealand. Kea listed on the London AIM market
in February 2010.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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