Octanex moves towards drill decision

JETT RINK: Oil & Gas company Octanex, with its Joint Venture partner OMV New Zealand, has progressed towards reaching a decision on whether to drill the Matuku prospect in PEP 51906.

PEP 51906 is situated in the offshore Taranaki Basin of New Zealand.

Octanex holds a 35 per cent participating interest in the permit. The JV is operated by OMV which holds the remaining 65 per cent participating interest.

A new 3D seismic survey, acquired within the area of PEP 51906 and PEP 53537, was completed in late July 2011.

At the same time a number of additional lines of 2D seismic data were acquired across both permit areas.

Both the 3D and 2D surveys aimed to provide better delineation of the Matuku feature.

Processing of the new Matuku 3D data is progressing to schedule and is currently expected to be completed by early November, after which mapping and interpretation of the new data will commence.

In tandem with the acquisition and processing of the new Matuku 3D data, OMV is conducting basin modelling to assess the hydrocarbon source potential in the north-west of PEP 51906 and to the west of and beneath the Matuku feature.

Octanex said early indications from the basin modelling suggest Matuku is ideally located adjacent to a potential hydrocarbon source.

Related exploration work has also identified a number of follow up leads adjacent to Matuku.

The JV has budgeted to commence initial planning for a well, hopefully to test the Matuku prospect, with a view to drilling in the first half of 2013.

However, OMV has not yet made a commitment to drill a well.

“OMV is an experienced international operator of both exploration and production interests and has substantial New Zealand permit interests,” Octanex said in its ASX announcement.

“These New Zealand interests include being the operator of the Maari oil field (PMP 38160), located to the immediate south of PEP 51906 in which OMV holds a 69 per cent interest, a 10 per cent interest in the Maui gas/condensate field (PML 381012) and a 26 per cent interest in the Pohokura gas/condensate field.

“All of these permits are located in the offshore Taranaki Basin.

“Octanex is confident OMV will continue to bring to bear its considerable exploration and operational experience, knowledge and expertise regarding the hydrocarbon potential within PEP 51906 and PEP 53537.

“Octanex considers PEP 51906 has the potential to contain a number of discrete oil accumulations and is encouraged in having a Joint Venturer and Operator of the substance and experience of OMV carry out the on-going exploration of these two permits.”