Horizon Oil - Oil and Gas Exploration Production
Activities Operations
New Zealand
New Zealand Activities Operations
PMP 38160 – Maari field (10.00%)
Current status of activities:
- Development drilling program with Ensco 107 jack-up rig began 11
November 2008 and completed ahead of schedule on 26 July 2009.
Program entailed batch drill 3 oil production wells, followed by
3 water injectors and 2 oil production wells - Wellhead platform and FPSO operational, connecting flow-lines and
umbilicals installed. 100 Hour Test through FPSO facilities
completed 8 March 2009 - Production wells
- Development drilling complete - MR1, MR2, MR3, MR4 and MR5
drilled, completed and hooked-up to FPSO - Production to date hampered by required shut-ins for simultaneous
drilling operations - Peak production rate of 40,000 bopd achieved in August 2009
- Development drilling complete - MR1, MR2, MR3, MR4 and MR5
- Injector wells
- Injector well driling complete - MR6, MR7 and MR8 drilled and
completed for water injection
- Injector well driling complete - MR6, MR7 and MR8 drilled and
- First cargo of crude oil offloaded in April, with total production to date
over 5.8 million barrels (Horizon Oil’s working interest share of
production was 180,703 barrels) - Successful appraisal / development wells drilled from platform on
secondary zones - M2A sands and Manaia Mangahewa formation;
both wells completed for production and awauiting on hook-up - Ensco 107 rig released 22 November 2009 and was demobilised to
Singapore and went off hire on 13 January 2010
The participants in the development are:-
Horizon Oil International Limited
(a wholly owned subsidiary of Horizon Oil Limited) 10%
OMV New Zealand Limited (Operator) 69%
Todd Maari Limited 16%
Cue Taranaki Pty Ltd (a wholly owned subsidiary
of Cue Energy Resources Limited) 5%
Background:
The Maari development, operated by OMV (New Zealand) Ltd, is located in PMP 38160 some 80 km offshore Taranaki, New Zealand in 102 m of water. The field, in which Horizon Oil has a 10% interest, holds proven and probable reserves in excess of 50 million barrels of oil.
Horizon Oil acquired a 10% interest in this field in January 2003 and participated in the drilling of the Maari 2 appraisal well. The Maari-2 well successfully appraised the central part of the field and led to commencement of the field development planning process.
In November 2005, the operator of the Maari joint venture, OMV New Zealand Limited, advised the go ahead of the development of Maari field. The development concept involves an unmanned wellhead platform housing the wellheads of the 5 production and 3 injection wells, linked via subsea flowlines to the floating production, storage and offloading vessel (‘FPSO’) Raroa, anchored 1.5 km away.
On 7 December 2005 it was announced that the New Zealand Government’s Ministry of Economic Development had granted Petroleum Mining Permit (‘PMP’) 38160 for the field, covering an area of 34 sq km. The PMP grants the joint ventures’ the rights to conduct production operations for a period of 22 years, reflecting the long life predicted for production from the main zone at Maari, as well as from shallower and deeper zones which have not yet been fully appraised.
PEP 38413 - Manaia (10.00%)
The Manaia-1 well spudded on 2 August 2009 and is planned to take 45 days to drill. The horizontal completion section of the well in the Mangahewa formation is planned to be up-dip of the Maui-4 discovery well drilled in 1970, which flowed 575 bopd from a vertical exploraiton well through that zone. As at the date of this report, the well has penetrated the top of the reservoir, set 6,385 m of 9-5/8" casing and was ready to drill the horizontal section. If warranted, the well will be equipped for production and flowed to the Maari FPSO.
The Manaia structure is located in PEP 38413 and lies adjacent to PMP 38160 (Maari), some 80 km offshore Taranaki, New Zealand. The field, in which Horizon Oil holds a 10.00% interest, is expected to hold 1 – 2 mmbo in net resources, subject to appraisal.
PEP 51313 - Matariki (30.00%)
Horizon Oil announced a farm-in to permit PEP 38494 on 3 September 2008 with the intention of earning a 25% interest in the block, which lies immediately adjacent and south of the Maari and Manaia permits.
During the course of this year, the licensing position has been modified and increased to cover a new block PEP 51313. Horizon Oil has agreed to farm-in to this bigger block for a 30% stake.
Reprocessing of existing 2D and 3D seismic is underway – the existing 3D
data will provide continuous coverage over Maari, Manaia, Pike and Paua
prospects. A new 200 sq km 3D survey, planned for Q2 2010 utilising the
Reflect Bergen Resolution vessel, will continue the coverage from Paua to
south of Matariki prospect. At the completion of the 3D seismic survey,
contingent on sea and weather conditions, two further swath lines
totalling 80 km in length will be acquired to provide advance coverage
on critical elements of the Te Whatu and Pukeko prospects. This will help
in the planning of a new seismic survey in the Te Whatu area in
H2 2010 / H1 2011. The first well is scheduled to be drilled in
H2 2011 / H1 2012.