The Houston-headquartered company is also increasing its stake in the promising Tuihu licence further north along the Tariki thrustbelt and probably taking over as operator of the PEP 38718 block.
Oil and gas flows from the fields have not been as good as expected for some months, with the complex Taranaki Basin geology continuing to frustrate Swift.
So the company has called in as yet un-named US experts to help solve the Rimu-Kauri riddle. It is also reducing its capital expenditure in New Zealand, while the internationally renowned firm reviews all aspects of reservoir development in the fields.
"We have been having continuing problems for some time now and are convinced that the Tariki sands are damaged in some way. The rock properties indicate better rates of production than we have been getting," said Swift executive vice-president Bruce Vincent from Houston today.
Swift did not know if the type of drilling fluids used or the fraccing techniques used were the likely causes, but believed that the Tariki sandstones had somehow been damaged during the past months.
Vincent said the reservoir optimisation review should be completed and the results known by early 2003. He declined to name the contracted company, though he said it was an internationally recognised firm.
Vincent also declined to confirm that Swift Energy was buying Shell New Zealand's 50% stake in PEP 38718 and taking over as operator, though it is known the final paper work is about to be signed regarding this.
He had no comment to make on rumours that Swift Energy had exercised its pre-emptive rights to prevent relative newcomer Greymouth Petroleum becoming involved in the Tuihu licence and possibly upsetting those joint venture agreements. Indo-Pacific Energy, and more recently fellow Ngatoro partner New Zealand Oil and Gas have talked of discord between themselves and Greymouth regarding the Ngatoro mining licence and the Goldie oil discovery within PMP 38148.
It is known the Royal Dutch Shell group is only really interested in offshore blocks in New Zealand or onshore blocks where it still retains deep exploration rights. So it is no surprise Shell NZ would want to exit the Tuihu licence, which is also along the eastern Tariki thrustbelt as are the Rimu-Kauri fields and the promising but also frustrating Huinga-1B sidetrack well.
Five months ago oil production from the Rimu production station was about 1270 barrels of oil per day and gas production up to 2.8 million standard cubic feet per day. Now net production during the third quarter of 2002 had averaged only 968 barrels of oil equivalent per day (572 barrels of oil and condensate and 1.8 mmscf of natural gas). This is solely from the Tariki sands.
Swift Energy also said that preliminary testing of the Kauri A-4 exploratory well was encouraging, although more work was required before a final appraisal could be made.
The well recently flowed natural gas and condensate at average rates of 2.1mmscf/d 76 barrels of condensate per day, with an average flowing tubing pressure of 326 pounds per square inch, over 119 hours. This was from three distinct intervals in the upper portion of the shallow Kauri sand. The well was then shut- in to evaluate the pressure buildup and for the evaluation of flow data obtained.
