Review of Operations

Last Updated on Tuesday, 13 October 2009 14:21 Written by Administrator Wednesday, 16 September 2009 11:41

TUI AREA OIL PROJECT

The Tui Area Oil Project which constitutes three fields, Tui, Amokura and Pateke, started production on 30 July 2007, and has produced continuously from that date with the exception of a planned 6-day shut down for maintenance in December 2008. A total of 9.12 million barrels of oil (net 912,000 barrels to PPP) was produced in the 12 months to 30 June 2009, averaging 24,975 barrels/day over the year. Total cumulative production from the field to 30 June 2009 is 23.3 million barrels (PPP 2,330,000 barrels).

The estimated ultimate recovery (Initial proven and probable reserves) has been increased marginally from 50.1 to 50.5 million barrels as at 30 June 2009, based on field performance. Field ultimate recovery is significantly higher than the pre‑development estimate of 26.8 million barrels, which is notably less than the current estimate of barrels still remaining to be produced of 27.2 million barrels (net 2,720,000 barrels to PPP).

The strong production performance of the field has allowed initial reserves to be increased in the last year despite the deferment of the possible Tui-4H infill well. These initial reserves do not include any credit for possible exploration success.

EXCELLENT PRODUCTION FROM THE TUI AREA OIL FIELDS PROVIDED PAN PACIFIC WITH STRONG REVENUES AND CASH FLOW DURING THE YEAR TO 30 JUNE 2009

Tui oil is produced from four horizontal wells which flow to a Floating Production Storage & Offloading vessel (‘FPSO’ – the Umuroa) which is permanently moored offshore in the waters above the Tui fields. The oil is processed on the Umuroa before being exported via export tankers destined for refineries on Australia’s Eastern Seaboard, South-East Asia and Hawaii.

The firm contract for the Umuroa runs to end 2015 with additional one year options to the end of 2022. The availability of the Umuroa over this period provides a cost-effective basis to develop and maximise the value of any near-field exploration successes.

 

 

 

 

 

 

 

 

 

 

 

 

 

Tui Area Oil Exploration

The Tui Area Joint Venture has secured the services of the semi-submersible drilling rig Kan Tan IV and has committed to drill at least two exploration wells programmed for Q1 2010 on the current rig schedule. Drilling candidates are the Tui-NE and Tui-SE prospects, potential eastern extensions to the Tui Field, and the Tui-SW prospect, a possible southern field extension. Successful discoveries would likely be developed by low-cost tie-back to the existing Tui facilities.