Kea has left its original estimate of gross
recoverable resource of one million barrels with a potential upside of
up to three million barrels unchanged
Shares in () were in demand this morning after the AIM-quoted explorer said its Puka 1 well onshore New Zealand found oil.
Kea’s wholly-owned Puka 1 well, located in the
PEP51153 licence area in the Taranaki basin, intersected a 40 metre
interval with analysis of electric logs indicating a minimum of 4.5
metres of moveable hydrocarbons in good reservoir quality sands.
As both the depth and the extent of the sands were
in line with pre-drill expectations, Kea has decided to leave its
original estimate of gross recoverable resource of one million barrels
According to Kea, the resource has a potential upside of up to three million barrels.
Kea noted that a “considerable number” of producing
oil and gas pools have been discovered in onshore Taranaki within the
Mt Messenger sands, which were targeted by Puka 1.
The most recent is the nearby Copper Moki oil
discovery, made by New Zealand Energy Corp, with several similar
discoveries made by . Shares in both companies, said Kea, reacted very positively to those discoveries.
In its interim report released in February, Kea
said it had agreed to farm out part of this well and a “more detailed
announcement will be made as soon as a formal agreement has been
The well has been cased and suspended pending flow
testing and potentially long-term production. The timing of initial flow
testing will be determined by the availability of equipment, the
Kea rallied ten per cent to 8.97 pence in early deals, valuing the company at £49.65 million.