NZOG today reported that Kiwi-1 was drilling ahead past the 3880m depth and was expected to encounter the Cretaceous North Cape Formation at approximately 4100m.

However, logs of the shallower Eocene-aged Kapuni F Sands objective, indicated those sands appeared to be water-bearing at this location.

“Yes, we are disappointed; four out of four would have been a very nice result, but three out of four’s not bad either,” NZOG exploration manager Eric Matthews told EnergyReview.Net from Sydney this morning.

All three previous wells - Tui-1, Amokura-1 and Pateke-2 - drilled by the Ocean Bounty in the northwest of PEP 38460 have struck hydrocarbons in the Kapuni F sands.

While Matthews declined to speculate on what had happened at Kiwi-1 - “we will complete the well and evaluate all the available data” - commentators said the well may have been down-dip of the targeted structure.

“It’s pretty flat down there and easy to miss a thin oil column,” said one commentator, referring to the 11-13m columns encountered so far.

Matthews remained positive, however, saying the stratigraphic North Cape formation, which is expected to be encountered within the week, looked to be a very interesting structure.