Austral Pacific Reports Results of A6 Well Drilling and Notification of Waihapa Production Station Temporary Shut Down

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[{"type":"text","content":"\n\n\n\nWELLINGTON, New Zealand, July 4 /CNW/ -- Austral Pacific Energy Ltd.\n(TSX-V: APX; NZSX: APX)\n\n\nThe current well program was designed to test additional reserve\npotential in the greater Cheal area. The locations were chosen, based on the\nregional 3D seismic data set to have potential for a thick gross sand package,\nabove the regional oil water contact.\n\n\nCheal-A6 and A6ST wells were targeting a separate lobe of sand from the\nmain Cheal 'A' Pool, the Cheal-A7 well is classified as a step out well\ntargeting an extension to the same pool as the successful Cheal A3 and A4\nwells.\n\n\nThe company announces that the Cheal-A6 well reached a total depth of\n1930m on June 26th, 2008. The well intercepted an oil bearing MM3 Formation\nas prognosed at approximately 1818m MD, but the net sand interval was\ninterpreted from electric logs to be some 2 metres thick, thinner than\nprognosed and sub economic to complete and produce.\n\n\nThe Joint Venture (Austral Pacific Energy Ltd 69.5% and TAG Oil 30.5%)\nagreed to plug and abandon the MM3 zone in this well bore, set a whipstock\nplug at 1359m and kick off a side track well to a targeted location\napproximately 150m to the south of the original A6 penetration.\n\n\nCheal-A6ST was drilled to a total depth of 1936m on July 2nd, 2008 and\nintercepted the targeted MM3 sands as prognosed, well above the regional\noil/water contact, but again, while oil charged they were only some 2 meters\nthick. After evaluation of all subsurface data the Joint Venture has agreed\nto plug and abandon the A6ST well as a sub-commercial hydrocarbon discovery.\n\n\nA new whipstock plug will be set in the wellbore and the rig will now\ncommence drilling the Cheal-A7 well from the same surface location.\n\n\nCommenting upon the result, Mr. Jewell Austral CEO said, "We were pleased\nwith proving that the oil water contact encompassed a larger Cheal field area\nbut very disappointed that the aggregate sand thickness in this location was\ntoo thin to be commercially produced. While we are disappointed in the results\nin this well we remain confident in the ultimate upside potential of the Cheal\nfield development and the Greater Cheal play trend. We have built well\nappraisal failures into our overall planning and remain determined to bring\nsuccess to the JV and shareholders."\n\n\nIn other ...

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