Todd Energy’s major drilling campaign

Press Release – Todd Energy

Todd Energy is embarking on a major oil and gas drilling programme over the next few months. The programme will cost Todd Energy in excess of $100 million.

Media Release Monday 31 August 2009

Todd Energy’s major drilling campaign aims to boost supply security

Todd Energy is embarking on a major oil and gas drilling programme over the next few months. The programme will cost Todd Energy in excess of $100 million.

The leading NZ energy producer spudded the onshore Mangahewa 4 well on 1 August, which is the first of a three well campaign in its Mangahewa mining permit. In another onshore campaign Todd Energy will drill another new well at its Kapuni field.

Also spudded in August was the Manaia-1 appraisal well targeting an oil accumulation in the Manaia exploration permit adjacent to the producing Maari oil field. Todd Energy will participate in the Hoki-1 exploration well scheduled to be drilled in late Q4 this year with the semi-submersible rig the Kan Tan IV, 120 km North West of Cape Egmont.

Richard Tweedie, Todd Energy Managing Director said he is “very optimistic” that the company’s major drilling campaign will “continue to add to New Zealand’s impressive growth in domestic oil and gas production.”

The Mangahewa 4 well in PMP 38150, drilled with the Parker 188 rig is targeting the Mangahewa sands for gas over an interval from 3300m to 4200m. Two further wells will be drilled after Mangahewa 4 and if successful a major drilling programme will be undertaken at Mangahewa.

“If successful Mangahewa will provide additional reserves for future projects we are currently planning, such as the LPG extraction plant and additional power generation”, said Mr Tweedie.

Offshore an extended reach well drilled from the Maari platform into the Manaia structure in PEP 38413 will step out 6.8 km and reach a total depth of 7.6 km. Drilled with the ENSCO 107 rig, it is an appraisal well targeting the Kapuni group sands that were found to be productive in the Maui-4 well in 1970 by STOS. Following this test the rig will then drill the M2A appraisal well, targeting a shallower interval immediately above the Moki sands at the Maari structure. Todd Energy has a 16% interest in these wells and the other partners include OMV 69% (Operator), Horizon Energy 10% and Cue Energy 5%.

Todd Energy has a 18.75% interest in the Hoki-1 prospect, located in PEP 38401 and is an ‘Upper Cretaceous North Cape Formation’ sandstone target at approximately 3500m sub-sea level. The other JV partners include AWE (Operator) 53.75%, OMV 21.25%, and NZOG 10%.

“Hoki-1 is a potentially large but very high risk prospect and it is considered oil prone but gas is possible with resource estimates ranging from 125 MMBBL to 300+ MMBBL”, said Mr Tweedie.

The proposed Kapuni well will be drilled in October this year. The new well will improve the flow of gas from the field and further extend its productive life. Todd Energy owns 50% of Kapuni and Shell also owns 50%.

“We have never been as busy with exploration activity, it is a very exciting time for Todd Energy and the flow on effects will be significant if we are successful”, said Mr Tweedie.

“I believe the Government and particularly the Minister of Energy, Hon Gerry Brownlee’s focus and enthusiasm for New Zealand’s oil and gas industry has helped create a more positive investment environment.”

ENDS

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