This result is based on how much oil AWE assessed each of the four completed wells was expected to produce over the next 10 years.

The increase in the recoverable oil reserves is based on the preliminary post-drill mapping of the Tui, Amokura and Pateke oil fields, and incorporates data from the four development wells and further interpretation of the seismic data.

AWE has also identified potential for further undeveloped reserves in the Tui

Area.

A more comprehensive reserve study incorporating production trends from the wells and the re-processed 3D seismic data has also started.

This study will also evaluate the economic potential of the undeveloped reserves in the area. It is expected to be completed in two to three months and will be released after it has been considered by the joint venture.

In the past two weeks, AWE said production rates and facility up-time performance at Tui have improved considerably, with the project producing 47,000 barrels of oil per day.

All four subsea production wells have been successfully commissioned and are flowing strongly as expected with minimal quantities of water.

These four wells, with a combined production capacity well in excess of 100,000 bopd, are being choked back to the rate that can be processed on the FPSO facility.

To date, Tui has produced about one million barrels of oil.

AWE said oil marketing and shipping logistics were proceeding satisfactorily, with six 300,000-barrel parcels sold to date to refineries in Australia and Southeast Asia, two of which have been successfully lifted.

“The Tui Area oil project has made a smooth transition from the construction and installation phase, through the major commissioning activities, and now into routine production operations,” AWE’s managing director Bruce Phillips said.

“We are obviously very pleased with the progress on the project to date and look forward to our current exploration campaign adding further potential development options within the offshore Taranaki basin.”

The Tui partners are operator AWE (42.5%), Mitsui E&P NZ (35%), New Zealand Oil & Gas (12.5%) and Pan Pacific Petroleum (10%).