AWE Limited advised that there has been a temporary setback to drilling of the Tui South West prospect.

The upper section of the Tui SW-1 well has been abandoned due to problems encountered with unconsolidated formation. This morning the Kan Tan IV drilling rig has been moved approximately 35 meters and is preparing to drill a new well, Tui SW-2. Tui SW-1 had reached a depth of 1505 meters, the intended casing point, but operations to run the 13 3/8" casing were hampered by deteriorating hole conditions and the decision was taken to move to a nearby location and start again.

The Tui South West prospect is located in mining license PMP 38158 in the offshore Taranaki Basin and is adjacent to the producing Tui oilfield.

The Tui SW-2 well is planned to be drilled to a total depth of approximately 3,725 meters. At the conclusion of drilling, Tui SW-2 will be cased and suspended as a possible future gas injection well. Kahu-1, to the east of the Tui oilfield, will be drilled immediately following Tui SW-2.

Tags: AWE Limited