ASX/Media Release
14 July 2010
Kupe Field Initial 2P Reserves Increase
Origin Energy ('Origin') as Operator, on behalf of the Kupe Joint Venture, wishes to advise that following a detailed reserves review, initial proved and probable (2P) reserves in the Kupe Field have been increased.
The initial 2P sales gas reserves have increased by 8%, LPG reserves by 5% and light oil (condensate) reserves by 27%.
The Kupe Field, located in PML38146 in the offshore Taranaki Basin, New Zealand, is a gas-condensate filled reservoir in the Farewell Formation. The reserves review has integrated new petrophysical, fluid sample and well test information from development wells drilled in 2008 with full field static and dynamic reservoir models. These models have been updated to enable matching of the new technical information with limited early field production data.
As a result of this modelling initial, 2P reserves have been revised to 74.2 million BOE (431 PJe) consisting of 273 PJ of sales gas, 1114 kilotonnes of LPG and 18.6 million barrels of light oil.
Production since commissioning commenced on 3 December 2009 until 30 June 2010 has totalled 2.9 million BOE (17 PJe) (10 PJ sales gas, 32 kilotonnes of LPG and around 1 million barrels of light oil). The remaining 2P reserves at 30 June 2010 are therefore 71.3 million BOE (414 PJe), (263 PJ sales gas, 1082 kilotonnes LPG and 17.6 million barrels of light oil).
The reserves review has also clarified the anticipated requirements for additional capital expenditure later in the field’s life. It is now expected that this will include two additional production wells and full field compression. These costs and precise timing will be refined over the following 12 months.
Commenting on behalf of the Kupe Joint Venture, Origin Energy New Zealand General Manager, Mr. Chris Bush said “Following a successful commissioning and early commercial production, we are delighted to announce a significant increase in field reserves which enhances Kupe’s ability to continue to make a significant contribution to New Zealand's gas and LPG supply needs for the next 15-20 years”.
The Kupe Gas Project itself, a complex offshore and onshore production system was officially opened on 18 March 2010 and became fully operational post commissioning on 22 March 2010. It will provide 10-15 per cent of New Zealand's current annual gas demand and more than 50 per cent of the country’s LPG demand.
Kupe Gas Project participants are:
| Origin Energy Resources (Kupe) Limited * | 50 per cent (Operator) |
| Genesis Energy | 31 per cent |
| New Zealand Oil & Gas Limited | 15 per cent |
| Mitsui E&P Australia Pty Ltd | 4 per cent |
* A wholly owned subsidiary of Origin Energy Limited
For further information contact:
|
Media – New Zealand |
Investors |
About Origin Energy
Origin Energy is Australasia's leading integrated energy company focused on gas and oil exploration and production, power generation and energy retailing.
Listed in the ASX top 20 the company has approximately 4,000 employees, is a leading producer of gas in eastern Australia, is the largest owner and developer of gas-fired electricity generation in Australia and is a leading wholesaler and retailer of energy. The company services more than 3.5 million electricity, natural gas and LPG customers across Australia, New Zealand and the Pacific.
Origin's strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth in the ever changing energy industry. Through Australia Pacific LNG, its 50:50 incorporated joint venture with ConocoPhillips, Origin is developing Australia's largest CSG to LNG project based on Australia's largest CSG reserves base.
In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.
Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.
For more information go to originenergy.com.au
