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Onshore Taranaki Kahili Block Offer
Onshore Taranaki Kahili Block Offer
The Minister of Energy and Resources, Hon Gerrry Brownlee, is offering by public tender a small onshore Taranaki block of 5.99 sq kms that was previously held as the Mining Permit 38153.
The Kahili Field was discovered via drilling of the Kahili-1B sidetrack well in 2002. The well was a directional sidetrack to evaluate the Tariki sandstone oil reservoir encountered in the drilling of Kahili-1 in 2001 and was tested via DST to produce gas, oil and water. The Tariki Sandstone in Kahili-1B has a true vertical gross thickness of 164.9m with a net thickness of 117.5m. The production testing flowed gas at 4.1mmcfd with 32 stb/mmscf condensate/gas ratio on a 36/64" choke with a final flowing tubing head pressure of 565 psi.
The Mining permit for Kahili was granted in 2004, however subsequent development of the field failed after a short period. The Kahili-1B well is closed-in but not abandoned. The Mining permit was surrendered in March 2009.
Officials consider that the failure of the field was due to aggressive water influx into the small reservoir compartment that was tapped by the production zone. Further hydrocarbon volumes are likely to remain in adjacent separate compartments of this complex Tariki sandstone reservoir. The presence of a gas facility and pipeline at the Kahili wellhead reduce threshold volumes required to commercialise this field. A well placed further sidetrack could recover more gas condensate.
Data for the block area is available through the Online Technical Database and can be requested by emailing crown.minerals@med.govt.nz
