Kea Petroleum PLC Successful Puka 1 Test Results (0242K)

TIDMKEA

RNS Number : 0242K

Kea Petroleum PLC

15 August 2012

 
 For immediate release   15 August 2012 
 

Kea Petroleum plc

("Kea" or the "Group")

Successful Puka 1 Test Results

Kea Petroleum plc (AIM: KEA) is today pleased to announce successful initial results from its Puka 1 production testing.

Encouraging production test results

During the initial clean up flow period of four days, the well achieved oil flow rates up to 290 barrels of oil per day (BOPD) and gas flow rates up to 2.2 million cubic feet per day (MMCFD), despite being choked back to limit drawdown to ensure no formation damage. No formation water was produced during the flow period. The first shipment of oil from the Puka field was dispatched to market on 8 August 2012.

Well production is now temporarily halted until Thursday 16 August 2012 to establish initial pressure build up. The main flow period will then commence for a period of up to 30 days.

It is anticipated that the flow rates from the main flow period will be higher than the controlled rates recorded during clean up.

Forward Programme

The current test programme calls for a flow period up to 30 days followed by a build up period of up to 60 days. The exact timing of the test will be determined by analysis of the flow and build up data recorded during the test.

Plans are well advanced for extending the Puka site and relocating the existing Wingrove production facilities to Puka in order to commence production and oil sales following the completion of the current test. As previously reported, design and planning of follow up wells is also well advanced and it is anticipated that the first of these will be drilled in the fourth quarter of 2012 following completion of the current testing at Puka 1.

The initial results of the test confirm the previous log interpretation and the results obtained during the swab testing. Kea is also examining options for additional seismic to be acquired in the fourth quarter of 2012 to assist in delineating the extent of the greater Puka field and the placement of future wells.

It is not yet possible to revise reserves estimates of 1 to 3 million barrels of oil based on test data from this part of the programme. However, the Directors believe that there is potentially an enlarged Puka field with reserves that might be established by drilling a Puka 2 well together with additional seismic, further appraisal and development drilling.

Ian Gowrie -Smith, Kea Chairman says:

"Kea believes it is now on the brink of becoming a commercial oil and gas producer as well as an explorer. Early test production results from Puka 1 are most encouraging. Further testing of Puka-1 should enable us to establish reservoir size and the commercial consequences of this discovery."

This release has been approved by non-executive director Peter Mikkelsen FGS, AAPG, who has consented to the inclusion of the technical information in this release in the form and context in which it appears.

To learn more about Kea Petroleum, visit: www.keapetroleum.com or contact:

 
 Kea Petroleum plc            Tel: [phone] 
 David Lees, Executive 
  Director 
 RBC Capital Markets          Tel: [phone] 
 Matthew Coakes / Daniel 
  Conti 
 Buchanan                     Tel: [phone] 
 Tim Anderson/Sophie Cowles 
 

Notes to Editors:

Kea Petroleum is an AIM listed oil and gas exploration company with interests in four petroleum exploration permits in the Taranaki Basin of New Zealand. Kea listed on the London market in February 2010.

This information is provided by RNS

The company news service from the London Stock Exchange

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