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Salisbury said Tui was still producing far in excess of pre-production forecasts.
The Tui, Amokura and Pateke oil pools had already produced about 12.9 million barrels of oil since production started in late July 2007 and that full-year production would now exceed the latest 13MMbbl target set by AWE. Pre-production estimates were less than 10MMbbl.
The Tui partners had first forecast initial oil flows of about 40,000bpd, rising rapidly to almost 50,000bpd, then dropping almost as fast to about 28,000bpd by the end of 2007, followed by a gradual decline to about 18,000bpd by April.
While actual first flows of between 36,000bpd and 40,500bpd were below those pre-production forecasts, since a de-bottlenecking of the floating processing storage and offtake vessel's facilities late last year, subsequent production had exceeded 40,000bpd in each of the following six months to April.
Tui's 2P reserves had also increased, by over 68%, from the first 27.9MMbbl to the latest estimate of 47MMbbl, based on the anticipated additional 5MMbbl expected to be recovered because of the extended charter of the Umuroa FPSO, perhaps out to 2022, that the partners announced last week.
While Tui operating costs were "significantly" below $US10 per barrel, with the average net oil price so far exceeding $US93 per barrel, Salisbury said total project capital expenditure had increased by almost 22%, from the initial $US225 million (about $A238 million) to the present $US274 million (about $A284.7 million).
Tui Area oil contributed over 92% of NZOG's revenue for the first nine months of the June financial year, providing $NZ141.8 million (about $A116.3 million) of the total $NZ153.7 million (about $A126 million) income.
Tui will be NZOG's only producing petroleum asset until the nearby $NZ1.1 billion (about $A900 million) Kupe gas-condensate project comes onstream in about mid 2009.
Salisbury said Kupe was NZOG's second success story.
The project was now almost 75% complete, with the three production wells completed and the construction of the onshore production station well advanced.
High world oil prices meant that the economics of the project had improved, with about 66% of the value now in the field's condensate and liquefied petroleum gas, he said.
Kupe's estimated 2P reserves are 254 petajoules of gas, 14.7 million barrels of condensate and 1.1 million tonnes of LPG.
While the imminent drilling of the Momoho prospect within the Kupe mining licence was NZOG's only current confirmed exploration effort, the company was continuing its evaluation of several"look-alike" prospects in and around the Tui field area.
These included Oi and Kahu in the Tui mining licence (PMP 38158) and Toke and Matuku, between the Tui and Maui fields, in licence PEP 38499.
NZOG's market capitalisation had increased over the past year from about $A215 million to about $A350 million now.
Its share price had experienced a 60% rise in the past four months and its shares were now trading at about $A1.33-1.35 on the ASX and about $NZ1.63-1.64 on the NZX.
Capital expenditure this year, of about $NZ84 million ($A68 million), had mostly related to Kupe, Salisbury said.