NZ Oil & Gas (NZO)

[dsurf]

NZO
23/11/2009
MINE

REL: 0938 HRS New Zealand Oil and Gas Limited

MINE: NZO: Drilling Rig heading for Albacore

The joint venture for the Albacore permit (PEP 38491) has taken assignment of
the drilling rig ENSCO-107, which will be used to drill the Albacore-1
exploration well.

NZOG (New Zealand Oil & Gas Ltd) has a 40% share in the Albacore permit,
which lies in the northern Taranaki Basin, approximately 70km north of New
Plymouth.
The ENSCO-107 is a jack-up rig that recently completed drilling at the Maari
field in the southern Taranaki basin. It has been in Taranaki waters since
October 2007 and prior to Maari drilled the Kupe development wells and the
Momoho exploration well for NZOG and its partners.

The rig was towed away from the Maari production platform last night and was
officially assigned to the Albacore joint venture at midnight.

The rig is now being towed north towards the Albacore drilling location, a
journey which will take approximately 24 hours. Once on site it will be
secured on the sea bed and commence preparation activities. A tensioner deck
that was removed for the Maari drilling will be reinstated, ahead of spudding
the well.

The Albacore-1 well is expected to take around 20 days to drill. The water
depth is 95 metres, and the total drilling depth is likely to be around 2200
metres.

Weighing approximately 16,000 tonnes, the ENSCO-107 stands 157 metres high
and is 63 metres wide. Once at the new drilling location, around 100 drilling
team members and support staff will live onboard the rig.

Three separate target zones that may contain oil or gas will be targeted by
the Albacore-1 well. At the end of the drilling, the well will be plugged and
abandoned and the results analysed.
End CA:00188132 For:NZO Type:MINE Time:2009-11-23:09:38:37

[Mr Tommy]

Just reading PPP agm notes from friday...

"The Tui oil production rate is inevitably reducing as the field declines, and production in the financial year 2009-10 is currently forecast at 4.7 million barrels, 470,000 barrels net to PPP. This is slightly lower than the original forecast of 5.1 million barrels; primarily due to a shortfall related to compressor issues, which are being addressed. Current production rates are about 15,000 barrels per day."

Whats this compressor issue ???

[digger]

Told you fokes i would know by my wind turbine when Albacore well would be spudded.
Last night about 9 oclock my wind turbine stopped getting enought wind to generate.This is the first time in 6 weeks this has happened,and looking at the weather map this morning i was sure it would be now all go. We have three or maybe four days before the weather could churn up again if it does even then.
All i want for christmas is---------

[Arbitrage]

Once the rig is anchored, the weather shouldn't affect the drilling.

[Mr Tommy]

Told you fokes i would know by my wind turbine when Albacore well would be spudded.
Last night about 9 oclock my wind turbine stopped getting enought wind to generate.This is the first time in 6 weeks this has happened,and looking at the weather map this morning i was sure it would be now all go. We have three or maybe four days before the weather could churn up again if it does even then.
All i want for christmas is---------

Hey Digger can you tell me what the forecast will be for Saturday at Taupo for the round Taupo race. Can you consult your turbine for me.

[blockhead]

And check Ashburton weather for me Dig, Lonbeach MTB race for me.

Very marvellous turbine you have !

[digger]

Hey Digger can you tell me what the forecast will be for Saturday at Taupo for the round Taupo race. Can you consult your turbine for me.

I can indeed Mr Tommy with an incredible level of accuracy. As you well know you only get what you pay for,so what donation will i be receiving before hand.Taupo is not that far away either so a large deposit will easily set your mind to rest.

[digger]

And check Ashburton weather for me Dig, Lonbeach MTB race for me.

Very marvellous turbine you have !

For you Blockhead i will lower the scale fee as your area is further away and my turbine is very concerned with giving a result that you would be happy to repeat in the future.
Until the rig hits the target zone we will all need a bit of humor to settle the nerves.Why does not make sence as we spend all our time wanting drilling to experience the thrill and drill or spill.
One interesting thing about Albacore that i meant to find out about this area at the AGM is that some 20 or so years earlier[or round about] a drill was done close by and found nothing. Does anyone know if that is in the same basin. With Hector we had the same thing with big hopes but a drill some decades earlier suggesting nothing. At that time the earlier drill was given as not being part of the same location. What do the geologist say here with Albacore?. Anyone have any thoughts?

[Arbitrage]

From NZOG:

24 November: The ENSCO-107 jack-up rig arrived on site around midnight and preparations have begun ahead of the drilling of the Albacore-1 well.

[fish]

For you Blockhead i will lower the scale fee as your area is further away and my turbine is very concerned with giving a result that you would be happy to repeat in the future.
Until the rig hits the target zone we will all need a bit of humor to settle the nerves.Why does not make sence as we spend all our time wanting drilling to experience the thrill and drill or spill.
One interesting thing about Albacore that i meant to find out about this area at the AGM is that some 20 or so years earlier[or round about] a drill was done close by and found nothing. Does anyone know if that is in the same basin. With Hector we had the same thing with big hopes but a drill some decades earlier suggesting nothing. At that time the earlier drill was given as not being part of the same location. What do the geologist say here with Albacore?. Anyone have any thoughts?

Doesnt sound as if they are drilling a previously targetted area-NZOG chief executive David Salisbury said his company's assessment is that the central northern Taranaki basin is a very prospective part of the basin. There are three separate play fairways within PEP 38491 -- a Pliocene Fan and two Mangaa sands -- and it contains half a dozen interesting prospects.

He said the Albacore prospect contains three separate target zones that may contain hydrocarbons. The Albacore-1 well will target structures recently defined by 3D seismic at depths of 1,400 to 1,800 m.

Salisbury said NZOG's internal analysis is that Albacore is more likely to contain oil than gas and, if successful, could support an offshore development similar to Tui.

NZOG now has interests in seven permits in the offshore Taranaki Basin and one in the Canterbury Basin. NZOG will be participating in the drilling of at least four wells this summer.