New Zealand and Australian focused Mosman Oil and Gas has discovered potential oil zones in its Petroleum Creek Project.
The company recently conducted the next stages of its flow testing, drilling and seismic acquisition in the South Island, which is known to have the largest oil seeps in New Zealand.
The Crestal-2 well has been drilled to 223m and oil shows (fluorescence, cut and visible oil) indicated hydrocarbons present.
Analysis from on-site is not conclusive but shows there is mainly water with potential oil zones and once expert reports have been assessed a decision will be made on the next steps.
Due to difficult hole conditions (caving sands and conglomerate), wireline logs could not be run from 50m to 86m, which means another well may be required to evaluate the Eight Mile formation.
As a result of the conditions encountered, the casing design of future wells will be modified accordingly in order allow for similar conditions.
The seismic acquisition programme is also now nearing 75% completion and the processing of the data has already begun.
Collection of data, processing and assessment will help update the geological model and determine the next exploration wells scheduled for later this year.
The initial interpretation data has indicated a fault between Crestal -1 and Crestal-2 which explains some of the differences in geology of each of these wells.
For example, the Cobden Limestone is 13m lower at Crestal-2 compared to Crestal-1.
The work has also indicated the Cobden Limestone is higher north of Crestal-1, and a seismic line will be acquired to map this area.
John W Barr, executive chairman of Mosman, said: “The past week has seen a lot of hard work by the Company’s staff and consultants, and that is appreciated.
“The information gained is an essential part of the exploration and appraisal process and good progress is being made in detailed understanding the area.
“We look forward to further exploration and development aiming for oil production in due course.”
At Crestal-1 flow testing is underway and the casing at the Cobden Limestone has been perforated in preparation for the flow testing.
The well is now completed with rods and tubing to surface and a rod pump downhole.
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