Taranaki joy: at work on Tui
Tui flows boost AWE turnover
Australia’s AWE saw revenue rise 159% sequentially to A$223 million (US$198,200) in the fourth quarter of 2007, driven by higher-than-expected production from its Tui project off New Zealand.
AWE reported a 24% increase in production compared with the previous quarter to 2.65 million barrels of oil equivalent, with the Tui project producing 3.95 million barrels of oil (1.68 million net to AWE).
AWE said in its quarterly report today that it now expects the field to produce 12 million barrels in its 2007-2008 financial year, up from its previous estimate of 11 million.
The company also said it had boosted proved and probable reserves twice, in August and November last year, by a combined 50% to 41.7 million barrels.
It said the four wells on the project produced an average total of 43,000 barrels per day, while production capacity at the field remained above 50,000 bpd. However, AWE said water production also crept up at the field to an average 22,800 bpd.
The company said a further development well, Tui-4H would be drilled on the field ibn mid-2009.
AWE operates the Tui project with a 42.5% stake.
AWE said the Cliff Head oilfield off Australia, in which it owns a 27.5% stake, produced a record 870,000 barrels in the quarter.
The company’s oil production for the quarter was 1.92 million barrels.
AWE continued gas production at the 30%-owned BassGas project in the Bass basin off Australia, as well as at the 25%-owned Casino field on the Otway basin, also off Australia.
The company plans to drill two appraisal wells on the Trefoil gas field and the Gentoo/Rockhopper complex as part of a joint venture exploring the T/18P Block, also on the Bass basin. AWE said Maersk’s semi-submersible rig Kan Tan 4 had been committed to drill the wells. AWE holds a 30% stake in the venture.
AWE said the joint venture on the Henry gas field in the Otway basin had sanctioned the development of the field, using the existing Casino production infrastructure in the area. The development is expected to cost A$275. First gas is expected in the first half of 2009. AWE holds a 25% stake in the venture.
Exploration was continuing on AWE’s prospects on the Otway and Perth basins off Australia, at its 42.5%-owned Bulu production-sharing contract on Indonesia’s East Java basin, and at its holdings on the Taranaki and Canterbury basins onn New Zealand, the company said.