Rimu oil and gas expected to flow

By Peter Hamling

Friday 22nd March 2002

The production and sale of oil and gas from Swift Energy's newly built Rimu production station near Hawera is expected to begin next week.

The company said testing would continue over a period of several weeks at different levels and from different wells before it established a continual flow through the production station.

Meanwhile, the company said production from its recently acquired Tawn fields in Taranaki has been averaging over 38 million cu ft equivalent per day - over 15% higher than originally expected - due to increased demand for natural gas.

"These levels are high because of increased demand resulting from previous drought conditions in the country, and the resulting hydro-electric shortfall. They are not expected to continue indefinitely," it said.

The Houston-based company has completed the acquisition of all the New Zealand assets of Antrim Oil & Gas, a subsidiary of Antrim Energy. The deal covers Antrim's interests in two petroleum exploration permits in the Taranaki Basin, including a 5% interest in the Swift-operated Rimu and Kauri discoveries, increasing the company's interest in this permit to 95%.

Swift has also completed drilling the Rimu-A2A well to a total depth of 12,273ft. The well encountered approximately 170 gross feet (51ft of net pay) of Upper Tariki sandstone. It intends to undertake hydraulic fracture stimulation of the well before final completion.

In other developments associated with the Rimu/ Kauri structure, Swift said it was working with Shell NZ to evaluate various approaches to developing and exploring the permit area, which includes an option for Shell to acquire a 25% interest.

Swift CEO Terry Swift said several other companies had expressed an interest in the permit. "Swift intends to pursue discussions with them and others regarding the purchase of up to a 25% interest in this Rimu/Kauri permit in the event that Shell NZ does not elect to exercise this option."

The Antrim acquisition helped to consolidate Swift's interests in the Rimu/Kauri discoveries and enhance its position in the Huinga prospect.

"We are looking forward to bringing Rimu on production just 27 months after the initial discovery. The acquisition of the Tawn assets clearly achieves numerous strategic objectives, providing a good foundation for our operations.

"New Zealand is expected to contribute approximately 20% of the first quarter 2002 production," he said.

Peter Hamling is editor and publisher of the Energy File

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