Project Profile
Value: Undisclosed
Location: Kaheru permit (PEP 52181), Taranaki Basin just 8 km from shore, Australia
Start-up Year: -
Reserves: recoverable reserves at 45 MMbbl of oil or 200 Bcf of gas and 7.5 MMbbl of
condensate
Water Depth: 25 m / 83 ft
The Kaheru prospect is situated in the Kaheru permit (PEP 52181) off the Taranaki coast in 25 metres (82 feet) of water. The operating joint venture submitted to surrender the permit in March 2016 as market conditions would not justify drilling commitment wells at the prospect before the May 2016 deadline. The request was granted on April 7, 2016.
Kaheru\'s close proximity to existing infrastructure was supposed to make commercialisation cost-effective in the event of a discovery. The prospect was estimated to hold mean recoverable reserves at 45 MMbbl of oil in an oil case, or 200 Bcf of gas and 7.5 MMbbl of condensate in a gas case. The permit has a drilling commitment deadline of May 2012 with a well expected to be drilled by May 18, 2013. PEP 52181, which contains the Kaheru Offshore JV prospect and numerous other leads, has extensive 2-D and 3-D seismic coverage, and has been identified to have substantial exploration potential with a good chance for success.
The Kaheru Offshore JV structure is a Miocene-aged prospect on the same successful thrust belt play fairway as many Taranaki oil and gas fields, including: Rimu, Kauri, Manutahi immediately north, and the Tariki, Ahuroa, Waihapa and Ngaere (TAWN) fields further north. New Zealand Oil & Gas (NZOG) signed agreements which will see it increase its stake in the Kaheru permit in the Taranaki basin, off New Zealand.
NZOG signed an agreement to take 17.14% of Canadian company Tag Oil Offshore’s 57.15% interest in the permit. NZOG had already signed an agreement with AGL Energy in March 2012 to take its 15% interest in the permit for US$3 million. However, following operator Roc Oil’s decision to exit the permit earlier in 2012, AGL’s stake increased to 42.86% which will still be transferred to NZOG for the previously agreed US$3 million.
As a result NZOG will see its share in the permit increase to 60% and will assume operatorship following Roc’s official withdrawal from Kaheru on 18 June 2012. Tag will hold the remaining 40% interest. A new was submitted to regulator, NZ Petroleum & Minerals, to extend the permit drilling commitment to 18 September 2012, with a well to be drilled by 18 May 2014. It added it had also begun a search for a farm-in partner to join the joint venture in a drilling programme planned for late 2013 or early 2014.
Operator:
New Zealand Oil & Gas (NZOG): Operator with 35% interest
Beach Energy: 25% interest
Tag Oil: 40% interest