Horizon Oil - Oil and Gas Exploration Production
Activities Operations
New Zealand
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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. Program is to batch drill 3 oil production wells,
followed by 3 water injectors and 2 oil production well - Wellhead platform and FPSO operational, connecting flow-lines and
umbilicals installed. 100 Hour Test through FPSO facilities
completed 8 March 2009 - Production wells
- MR3P8 completed in 1,518 m of clean, oil-filled sand and began
flowing to FPSO 25 February; - MR4P9 completed in over 2,000 m of clean, oil-filled sand and
began flowing to FPSO on 9 March; similar flow characteristics
to MR3P8 well; - MR5P12 completed in 1,800 m of clean, oil-filled sand and came
onstream on 8 April; - Peak combined production rate 32,000 bopd
- MR3P8 completed in 1,518 m of clean, oil-filled sand and began
- Development drilling program progressing well in terms of execution
(several days ahead of plan and gaining) and geological results - First cargo of crude oil offloaded in April
- Field now cash positive, inclusive of ongoing development drilling costs
- Plan is to drill Manaia appraisal / development well and possible M2A
sands development well at end of development drilling phase from the platform
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 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.
Along with its Maari co-venturers and in conjunction with the PMP application for the Maari field made in 2005, the joint venture applied for an Appraisal Extension over the Manaia structure. This extension was granted by the Ministry of Economic Development, and subject to satisfactory appraisal (which will be carried out immediately following the Maari development drilling) these resources will be produced through the Maari facilities.
PEP 38494 - Matariki (25.00%)
Horizon Oil acquired a 25.00% interest in PEP 38494 via a farm-in agreement with the operator, Todd Exploration. Horizon Oil will earn its 25.00% interest by funding 37.50% of the costs of drilling the Matariki-1 exploration well, expected to be in the second half of 2009.
PEP 38494 is located 50 km offshore Taranaki, New Zealand in 70-100 m of water and has the potential to contain approximately 100 mmbo in recoverable resources. Participation in the permit provides Horizon with the opportunity to build on its current involvement in the Maari field. Exploration of the adjacent acreage has clear technical, commercial and operation synergies with the current field development.