DRILLING

Indo Pacific to deviate Kahili after water flow

Drilling of the Kahili prospect in the Taranaki Basin, New Zealand, will be deviated after the Kahili-1 well yielded mainly water. An open hole straddle test of a 120 foot interval beneath 9500 feet in the well flowed 25 barrels of fluid - consisting of about 23 barrels of gas cut formation water and 1-2 barrels of light sweet crude oil.

Operator Indo Pacific Energy said it considered the well was situated too near to water saturated reservoir and too low in the oil trap to be commercial. However, the well has now been suspended, to allow a deviation well to be drilled eastwards from within the 9 5/8" casing, to test this oil trap at a shallower depth. Timing on the deviation is uncertain at this stage.

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