Webber told the NZSX that the company was fast-tracking development of the Cheal and Cardiff discoveries to generate early cash flow.
“These developments will provide the backbone for the company and the cash flow will provide the capacity to use both debt and equity to fully develop the company’s reserve base,” Webber said.
“We are undertaking rigorous studies to mature and high grade the prospects in our inventory in order to identify and pursue high impact drilling targets. Our intention is to establish and secure a material, sustainable production profile.”
At the Cheal oil field, pre-project planning is being finetuned and the results of the 3D seismic survey will also assist in the optimisation and planning for the development wells, according to Webber.
He said the company was also encouraged by results from a series of flow and pressure build-up tests on the McKee sandstone formation at the Cardiff-2A well, onshore Taranaki.
Test analysis has indicated the well flow rates will continue to improve. The company said at times these flows have exceeded 3 million cubic feet per day of gas and 100 barrels per day of light oil and condensate. Further testing will be undertaken over the next few weeks to confirm Cardiff’s commercial viability.
Meanwhile, petrophysical evidence suggests the deeper K3E sands to have at least as much potential as the McKee sands, Webber said. The company now plans to test the deeper zone as soon as possible.
He added that the results of a 3D seismic survey currently underway would assist in the delineation of further deep gas drilling targets in the Austral Pacific portfolio.
Austral Pacific also announced that it has concluded arrangements to purchase all of Tap Oil’s onshore New Zealand assets in a 50:50 joint deal with TAG Oil.
The acquisition increases Austral Pacific’s interests in seven permits, while adding two new permits to the company’s portfolio. The deal also includes assorted drilling and completion inventory.
Webber said the company will continue to explore its core onshore Taranaki and Papua New Guinea acreage.
“We are undertaking rigorous studies to mature and high grade the prospects in our inventory, with an accent on identifying high impact prospects for drilling,” he said.
“In keeping with this philosophy the company’s Douglas-1 exploration well in Papua New Guinea, expected to spud later in March, has a resource potential of 150 million barrels in the oil case. In addition there is considerable follow-up potential.”
