WAITARIA 2 EXPLORATION WELL,
PEP 38335, EAST COAST NEW ZEALAND,
EVALUATING LOGS AT 2134 METRES.
Pancontinental Oil & Gas NL announces that, the Waitaria 2 exploration well was drilled to a depth of 2134 metres in the Mid Miocene age Tunanui Formation. A suite of electric logs was run over the open-hole section from total depth to the casing shoe at 1351 metres. The well was subsequently deepened to 2140 metres.
A number of zones of interest have been identified by the petrophysical analysis of the electric log data. These interpretations are now being reviewed by the Joint Venture in order to formulate a strategy involving the testing of these zones and whether to deepen the well to the earlier indicated depth of 2590 metres.
For the interval 1903 to 2140 metres, drilled since the last report, down-hole cutting samples and drilling penetration rates have indicated that no significant porous sandstone reservoir beds were encountered.
While drilling down to 2134 metres, background gas levels have ranged up to 0.25%, with chromatograph readings of methane, C1 (1618ppm), ethane, C2 (139ppm), propane, C3 (91pm). Mud weight has been maintained at 15.5ppg. The synthetic based mud system is masking fluorescence, and none has been noted.
Pancontinental Oil and Gas NL announced previously that it had reached agreement with Westech Energy New Zealand to earn a 7.5% equity in PEP 38335, East Coast Basin of the North Island of New Zealand, by contributing 10.0% of the US $1.327 million drilling costs of the Waitaria 2 well. Pancontinental will only contribute 7.5% to additional drilling, completion and testing costs. This agreement is still subject to final Government approval.
The Waitaria prospect has been delineated by a close grid of modern 2D seismic data. The prospect has been mapped by the operator to have 4 way dip closure over an area of 6 square kilometres and vertical closure of 700 metres at a level immediately above the primary Mid-Miocene age Tunanui sandstone target reservoir.
PEP 38335 covers an area of 409 square kilometres and incorporates the regional city of Gisborne. Approximately 50 kilometres to the south-west, in the Westech operated PEP 38329 permit, are the late 1998 Kauhauroa and Awatare gas discoveries, adjacent to the town of Wairoa. The Kauhauroa and Awatare gas discoveries are in Miocene reservoirs and recorded test gas flows of up to 11.5 million cubic feet per day.
Participating interests in PEP 38335 (after earning) are :-
| Pancontinental Oil and Gas NL | 7.5% |
| Westech Energy New Zealand | 27.5% (Operator) |
| Orion Exploration Ltd | 27.5% |
| Indo-Pacific Energy (NZ) Ltd | 25.0% |
| Sun Resources NL | 7.5% |
| Everest Energy Inc | 5.0% |
Enquiries:
Andrew Svalbe
Tel: 08 9227 7178
Fax: 08 9227 9079
Email: svalbe@pancon.com.au
