Tui SW-1 has started.
The announcement is out from PPP
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Tui SW-1 has started.
The announcement is out from PPP
Tapis Oil Price breaks US$90 / barrel !!
http://www.upstreamonline.com/market...kets_crude.htm
At these prices and current production rates NZOG revenues substatially exceed NZ$100 million per annum
Quarterly Report: Strong quarterly cash flow and cash in the bank = NZ$192 million ..... and thats with out any input from Pike or PPP !!!
Go the Tui drilling !!!!
NZO is looking promising for a significant sp upgrade next week .
Having sold out of CUE recently at 27cents(needed money for tax and house building ) and watching them climb in subsequent days I will not repeat this mistake .
Tui sw has a high chance of success and publicity and high oil prices should propel the sp
What Fish you sold out of CUE. I bought quater million just under 14.5 just before cash issue on the simple arguement that CUE had the exact opposite luck with oil startup than the very good fortune that NZO had with TUI. As you know NZO got TUI startup and peak flow to 100% coinside with peak dollar value of oil in 2008. Well CUE got peak startup to match 100% with peak collaspe at 33dollars. It simple could not last so i got in.Today i still lament that i did not sell out of PPP and put it all into CUE.And that is not just hingsight as i was close to doing just that.
Yes i fully agree with you and ZOBRA as how things are slowly looking up for NZO.Even on the home front i stocked up 1500 liters of diesel knowing prices would rise back on 1st days of april. So far it has at the pump gone up 20% from what i paid.
Peak oil is getting more known now.Not mainstream but no longer tin pot theory. Will stick with my earlier an-lysis WTI will be 100 by year end.
We need TUI south west to come in and i would say there is about a 80% expectation that that will be the case.Interesting that the well is planned as a pressure input to get more oil recovered from tui.And that is before it is drilled.I take it from that that the JV expect the greater TUI field to now extend to TUI south west.
The reason that the operator of Tui AWE is planning a gas injector for Tui-SW is the are under pressure to deal with the production gas which up until now they have flared. RE-injecting the gas will mean no more flaring and might slightly increase Tui oil production.
the sw will not be a producer and the release from awe suggests they will come back later to drill another horizontal, but not on this drilling campaign meaning that this well will not add production immediately to the Tui programme.
It is very interesting that on the day of announcement the status of the well was announced as previously it was described that they would be drilling 2 wells. This means kahu will potentially be the only well that will add production at Tui this season. If it comes in that is, as it has a large degree of risk
The re-injection well is not for increasing oil flow rates, but to dispose of produced gas, as notie states. They already have gas lift systems, which utilise the produced gas to increase flow rates, these use only a vey small quantity of the produced gas. There is nothing more in that regard they can do to increase oil production. Gas lift and gas re-injection are two completely different things, (despite people often assuming they are the same, just different terminology) the only thing that is common are the compressors.
If an increase in production results from adding the extra gas injection well, it will be negligible, and in fact quite often causes problems with the oil production, causing reduced production - hence the reason why gas re-injection wells are normally drilled into a separate resevoir. This is high risk what they are doing here.....
Interesting Mattyroo. So is it fair to wonder if TUI sw is being drilled for the sole purpose of injecting the excess gas from TUI. An oil find then would make TUI SW a failure. Notie would just love that-- NZO a failure when it does not find oil and a failure when it does.
you might be better off asking awe as they are the operator and nzog's very minor holding at 12.5% means they really don't have much say on decisions at Tui. AWE and Mitsui hold 77.5% and only 50% is needed to make decisions. If nzog were running this field it would have been a shambles.
The Tui joint venture partners are:
Australian Worldwide Exploration (AWE) 42.5%
Mitsui E&P Australia Pty Limited 35%
New Zealand Oil & Gas Limited 12.5%
Pan Pacific Petroleum 10%
The quarterly report doesn't mention injecting gas for Tui SW-1 but does talk about Tui SW-1 opening possibility of increasing or extending production from the existing Tui facilites. This doesn't seem to imply that Tui SW-1 has a sole purpose of gas reinjection - where did this info come from, is it correct?