DRILLING OF
WAINGAROMIA 2 EXPLORATION WELL,
PEP 38330, EAST COAST NEW ZEALAND, DELAYED TO NOV/DEC 2001
Commencement of drilling of Pancontinental’s 38.22% Waingaromia 2 exploration well has been deferred to November or December of 2001 from the initially planned spud date of late March/early April.
As advised in an earlier announcement, the operator of the joint venture, Indo-Pacific Energy (NZ) Limited, advised that adverse ground conditions, caused by unseasonable heavy summer rains in the region, prohibited site preparation and road access works to the Waingaromia 2 drill site.
Although ground conditions have now improved, the operator has recommended that insufficient remaining time is available to construct the access road and several river crossings, complete the drilling operations and move the rig out prior to the onset of winter rains. Early winter rains could isolate the rig for several months at significant cost to the joint venture.
PEP 38330 work commitments required that the Waingaromia 2 well be drilled prior to June 2001. In light of the circumstances, the operator is seeking the approval of the New Zealand Mines Department for an extension of time to comply with the permit work commitments.
Waingaromia 2 will be drilled to a minimum depth of 500 metres, adjacent to the 1870’s historical Waingaromia-1 well which reached a depth of 402 metres. At that depth it penetrated a sand and conglomerate reservoir with reported strong oil and gas shows. Thin sands at 143 metres, 238 metres and 336 metres were also reported to have strong shows. Waingaromia 2 will provide the primary geological, reservoir quality and seismic depth control for a shallow and potentially large hydrocarbon play, as indicated by the interpretation of the June 2000 seismic data.
Although it is highly disappointing that the drilling of Waingaromia 2 well has been delayed by several months, Pancontinental Oil and Gas NL expects to participate in the drilling of a minimum of two additional wells during the year. Subject to final Joint Venture approvals, the Walyering 4 gas appraisal well, EP 414, onshore Perth Basin, is expected to be drilled in the third quarter and the Huinga 1 re-entry and deepening, PEP 38716, onshore Taranaki basin New Zealand, during the last quarter of this year.
Participating interests in PEP 38330 are :-
| Pancontinental Oil & Gas NL | 38.22% |
| Indo-Pacific Energy (NZ) Limited | 39.28% (Operator) |
| Origin Energy Resources NZ Limited | 22.50% |
Enquiries:
Andrew Svalbe
Tel: 08 9227 7178
Fax: 08 9227 9079
Email: svalbe@pancon.com.au
It is advised in accordance with Australian Stock Exchange Limited Listing Rule 5.11 that the report on the above project has been prepared by Mr Andrew Svalbe, AAPG, PESA, ASEG, FESWA who has had more than the required five years experience and is a competent person as defined in the Listing Rules of Australian Stock Exchange Limited and has consented in writing to the inclusion of this report as it appears here.
