Edit ModuleShow Tags

Austral Concludes Kahili Gas Purchase Arrangements


Published:

Austral Pacific Energy Ltd. announced that final agreements have been executed for the sale of gas from the Kahili gas-condensate field in the onshore Taranaki Basin, New Zealand. The Kahili gas is expected to be available to the market by mid 2004.

Natural Gas Corporation (NGC) will buy all gas produced from the field, for which initial reserve estimates are in the 4 billion cubic feet range. Kahili was discovered in November 2002; and is operated by Austral Pacific Energy, which holds a total 45% interest in the permit. The field will be produced initially from the Kahili-1A/B well; which is expected to commence flow at 3-4 million cubic foot of gas and 120-150 barrels of condensate (light oil) a day.

The reserve estimates are likely to change either up or down after pressure tests following some months of production. At that time, consideration will also be given to drilling a second well and/or 'fraccing' Kahili-1A/B, to enhance production and revenues. 'Fraccing' is a process of hydraulically fracturing a reservoir formation to enhance flow rate of oil or gas from the well.

NGC will construct, own and operate a separation plant to process the raw well stream and install 12 km of pipelines to connect Kahili gas to the existing NGC pipeline infrastructure. Subject to receipt of the necessary planning consents construction of the facilities, at a cost of approximately NZ$8 million to NGC, will commence in February 2004.

Edit ModuleShow Tags

Archive »Recent Articles

GE’s CNG In A Box Finds Home In Colorado CNG Station

Weld County, Colorado, welcomed its seventh public compressed natural gas (CNG) station, which is also the first in the area to feature GE’s CNG In A Box modular system, according to Sparq Natural Gas.

EIA: Most Locations See Nat Gas Price Drop

Natural gas spot prices dropped at most locations during the July 13 to July 20 report week, according to the U.S. Energy Information Administration (EIA).

Petrobras Looks To Scale Back

Petrobras, a Brazilian oil corporation, plans to sell or share control of its pipelines and open its liquefied natural gas (LNG) terminals to third parties as part of a plan to scale back its role in the state’s natural gas industry.

J-W Energy Exits Midstream, Upstream Markets

J-W Energy Co. has sold all of its oil and gas and midstream assets to affiliates of Aethon United LP, signaling an end to the company’s run in the upstream and midstream markets.

Siemens To Power The Missing Link

Siemens received an order from the Trans Adriatic Pipeline consortium for six, 15 MW turbo compressor trains. The equipment will be used in the Trans Adriatic Pipeline (TAP), which is part of the Southern Gas Corridor in Europe.