Perth-based OMV Australia today said its subsidiary OMV New Zealand, which acts as operator of licence PEP 38413, was plugging and abandoning Maari-2 at the conclusion of a successful drilling campaign.

Preliminary results of wireline logs indicated a net 17m of mobile oil was present within three sands of the M2A zone, a secondary objective of the well; and preliminary petrophysical analysis indicated a net of 41m of mobile oil was present in the main target, the Miocene-aged Moki formation.

"The results of Maari-2 indicate that the Maari oil field is likely to be commercially viable," said OMV.

A development scheme, based on utilising floating production storage and offloading (FPSO) facility was currently envisaged, said OMV, with horizontal producers supported by gas lift and horizontal water injectors.

News of the successful appraisal was hailed today by industry commentators, who say this latest success is bound to make Taranaki an even more attractive exploration destination.

"This shows that others can make fields work which Shell has walked away from, and hopefully turn them into commercial discoveries," said one commentator, referring to Shell New Zealand's sale of its majority Maari stake to OMV late last year.

Last week new minority partner Horizon Oil (formerly Bligh Oil and Minerals) said things were looking encouraging at Maari-2, when a 10m interval of hydrocarbon-bearing M2A sands was encountered (double the thickness of previous intervals), plus the top of the Moki formation was encountered 12m higher than prognosed.

New Maari partners Sydney-based Horizon Oil, and Perth-based Westgold Resources and Carpenter Pacific Resources will be delighted with the success of their first offshore New Zealand venture. All asked the Australian Stock Exchange to suspend trading of their shares until the results of Maari-2 were known.

Horizon bought a 10% stake in Maari from OMV for $US1.5 million) and Westgold and Carpenter a 5% stake, through Delta Oilfield Developments, from Todd Energy.

Commentators say it is likely the Whakaaropai FPSO, presently processing Maui B oil, will be used in any Maari development, given the relatively small size of Maari and the projected decline in Maui oil volumes. The proximity of the two fields - Maari is just 35km south of Maui - almost certainly precludes another FPSO being brought in just for Maari oil.

As well, OMV already has a stake in the Whakaaropai after buying a 10% interest in the Maui field and assets from Shell NZ last year.

The Whakaaropai processed about nine million barrels of oil in its first year of production in the late 1990s, though it processes far less these days, with Maui B oil projected to run out about 2005.

Shell, though selling out of Maari, should still benefit indirectly, as the Maui partners - Shell, Todd Energy and OMV - will want market rates for leasing the Whakaaropai to the Maari joint venture.

Fellow major Maari partner Todd Energy has said that given a favourable outcome from Maari-2, the joint venture would work towards finalising an economic development option.

OMV said production testing of Maari-2 was not required as the Maari-1 well, drilled in 1999, had adequately production tested the Moki oil sand interval.