Project Profile
Location: onshore Taranaki Basin, New Zealand
Production: 60,000 barrels of oil to date (cumulative)
Start-up Year: 2009
East West Petroleum Corp together with the joint venture partner, TAG Oil Ltd. (TAG), who is the operator, hold license PEP 54877 Cheal North East Permit.
Cheal-E1, E4, and E5 wells, all located on the Cheal North East Permit, are all productive oil wells that have cumulatively produced approximately 60,000 barrels of oil to date. East West has now recovered the initial US$4.5 million in revenue for its contribution of the first US$4.5 million in costs for the initial drilling program on the permit. Cash flow from Cheal-E1 and E4 alone is expected to fund the Company’s committed capital expenditures for the remainder of calendar year 2014. This program includes at least one well on PEP 54876 (Southern Cross) permit and at least one new development well on the Cheal North East Permit following up the success to date where the Company and TAG have established steady production and cash flow at E-site. The Cheal-E3 well encountered what the joint venture partners believe is commercial net pay based on petrophysical interpretation of the well log data. Data related to Cheal-E3 will be evaluated in advance of further work being completed on the well.
Operators:
TAG Oil Ltd. (TAG): Operator with 70% interest
East West Petroleum Corp: 30% interest