NZ Oil & Gas (NZO)

[zorba]

Bilo,

The other salient factor for cashflow going forward re Tui, is the investigation being undertaken to increase the capacity of the FPSO from 120k to 150k per day. On the current reserves estimate of 50.1m barrels, this means extraction of this amount is advanced by 7 years to 2013 instead of 2020. This won't kick in until 2010 though, so still expect a dip in cashflow from Tui for 2009.

Add to this the fact they have extended the contract on the FPSO out a further 5 years, and you'd have to say they are quietly confident on adding to reserves, from either existing or nearby or both.

Xerof,

If the FPSO can lift capacity to 150K liquids in the near term, this will produce an immediate lift in barrels of oil produced, and this will have an immediate effect on profitability.

Max liquids that can be handled is currently 120k, and this has been reached with oil dropping from 48-50,000 barrels to about approx 42,000 barrels or less.

So if max liquids can be lifted to 150K, then could see daily oil flow stay above 40,000k, even maybe return to near 50,000 barrels ......... but once max liquids reaches 150K then oil flow will fall off again.

In the meantime if FPSO can be modified to handle 150k liquids then this should be great for increased near term cash flows which is positive for discounted cash flow valuations etc.

Z

[Xerof]

Z,

As I said, this won't kick in till 2010

X

[Casa del Energia]

momoho is supposed to be testing both sides of a fault incase "compartmentised" , thats why 51 days on a dry hole basis.

my guess is will reach interesting depth from about july 15 and assuming hydrocarbons then some coring as they drill deeper. kupe 4 south had about 4 cores i think.
1 core = 2 days.

again, assuming find hydrocarbons then of course the drill time will be longer.

M

Good stuff. Thanks. I remember reading somewhere 'a complex structure' - I guess they really meant it.

[digger]

Good stuff. Thanks. I remember reading somewhere 'a complex structure' - I guess they really meant it.

The one thing i do not like the sound of is FAULT. To me it brings up a crack in the structure that lets all the oil or gas escape over millions of years.As you my have guessed i do not have a clue of how the JV's expect hydrocarbans to be there when a FAULT is also present,but they do. Naturally i hope there believe is correct,and my underlieing fear baseless.By end of next week we might be getting some hints.

[fish]

The one thing i do not like the sound of is FAULT. To me it brings up a crack in the structure that lets all the oil or gas escape over millions of years.As you my have guessed i do not have a clue of how the JV's expect hydrocarbans to be there when a FAULT is also present,but they do. Naturally i hope there believe is correct,and my underlieing fear baseless.By end of next week we might be getting some hints.

sounds like the gas hasnt leaked out

Company Announcements




New Zealand Oil and Gas Limited - Announcements




NZO
07/07/2008
MINE

REL: 1612 HRS New Zealand Oil and Gas Limited

MINE: NZO: Momoho Exploration Well Disclosure Notice

New Zealand Oil & Gas Ltd (NZOG) advises that as at 7.30 am this morning the
exploration well Momoho-1 had reached a depth of 2898m and the drill crew was
preparing to pull out of hole prior to running 9 5/8 inch casing.

The well encountered good gas shows upon penetration of the primary Farewell
Formation reservoir target at 2896m.

Although the presence of gas shows is encouraging, it is not possible to
comment on their commercial significance until the well has drilled through
the entire reservoir and logs are acquired over this section.

Momoho is an exploration well 6 kms southeast of the Kupe central field, off
the coast of South Taranaki. Drilling began on 13 June 2008.

[trackers]

Oh, HELL yes... Great news

[Drone]

Good news, reading between the lines you would think they would be careful about making this statement:

"Although the presence of gas shows is encouraging"

without them being pretty happy with the results!

Market has not reacted much though..(yet)

[bermuda]

Oh, HELL yes

Oh yes trackers,
Time to buy some more!!!

They didnt build that pipeline to take an extra 3 times the volume for nothing!

Good luck Noggers, especially the one's that held post option conversion.

[Bilo]

Oh yes trackers,
Time to buy some more!!!

Nice to see some serious buying, 300k in one order. Unfortunately at 15:50 and the announcement was at 16:12. I feel sorry for those people who had their sell orders filled - stinks actually.

[trackers]

Oh yes trackers,
Time to buy some more!!!

They didnt build that pipeline to take an extra 3 times the volume for nothing!

Good luck Noggers, especially the one's that held post option conversion.

At this price, and with extra gas to be produced from Momoho I am in the process of doing just that.

Now this may be me dreaming, but would we have expected them to reach the reservoir by now? The latest graphical chart would suggest to me that it was nowhere near it - Of course I then wonder if the reservoir is larger than originally expected?

Good call re: the pipeline Bermuda, you're onto it