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GREYMOUTH PETROLEUM
Greymouth Petroleum acquires second drilling rig for
immediate import to New Zealand
Release at Auckland at 1500h, 16 July 2006.
New Zealand owned and operated Greymouth Petroleum announced today that it has acquired Nabors
Drilling Rig No. 647 which will be exported to New Zealand for delivery at the end of this month. The
drilling rig was last in service on Barrow Island, Western Australia. This Nabors rig will operate in New
Zealand as Greymouth Drilling Rig No. 2.
Greymouth will put the new rig into immediate service on a drilling campaign aimed at gas and oil targets
to be drilled to appraise extensions to the Motoroa fields in permit, PEP 38464, in joint venture with the
Ngati Te Whiti Hapu. PEP 38464 is an onshore/offshore exploration permit containing the Motoroa fields.
Motoroa was New Zealand’s first producing oil property, having been discovered in the 1860’s (at the
time one of the first oil fields discovered anywhere in the world).
John Sturgess, Greymouth's Chief Operating Officer said; "We are pleased to have been able to beat off
the competition to buy this Nabors rig. New Zealand is critically short of drilling infrastructure, and
Greymouth Rig No. 2 is a welcome addition to the New Zealand rig fleet.” Whilst rig no. 2 will initially be
involved drilling Greymouth Petroleum’s own wells, Greymouth will establish a standalone drilling
company to provide drilling services to the New Zealand market place. The new drilling company will
provide working opportunities for students graduating from the Taranaki Drilling School, which was
established with Greymouth Petroleum sponsorship and technical support in 2005. “This will keep a pool
of quality rig hands in New Zealand, rather than losing critical mass, as a result of attrition, overseas”, Mr
Sturgess said.
In other news, Greymouth Petroleum announces that the Kaimiro-7 ST1 well, drilled in May this year in
the Kaimiro Mining Licence, PML 38091, has discovered a new gas pool. Flow testing of this well is
underway, and incremental gas reserves are being evaluated. The Kaimiro-7 ST1 well was drilled as a
deviated well utilising Greymouth rig #1, reaching total depth of 2001 metres in the Miocene Mt
Messenger Formation.
Greymouth also advises that commissioning operations for the Turangi Field are well advanced. Gas
export now awaits finalisation of Maui trunk line transportation agreements and finalising condensate
offtake agreements. Greymouth expects to be exporting specification gas by August, 2006 at initial
delivery rates of 10 TJ/d. Greymouth will ensure that more Turangi gas is online to meet any gas market
shortage which will arise if there are delays with other planned gas field developments.
GREYMOUTH INTERESTS
Greymouth produces oil and gas from the Kaimiro (PML 38091, 100% interest) and Ngatoro (PMP
38148, 100% interest) fields, which together comprise some 86.162 km2 and are held under long term
Level 26, 151 Queen Street, Auckland, New Zealand
PO Box 1394, Shortland Street, Auckland, New Zealand
Tel: (+649) 968 4633 Fax: (+649) 968 4636
petroleum mining rights. In addition to the Turangi Mining Permit PMP 38161, which comprises 28.072
km2, Greymouth has four New Zealand exploration permits including a 98% operated interest in the
Motoroa PEP 38464 block, a 100% operated interest in PEP 38739, a 100% interest in PEP 38747, and
a 100% interest in the newly granted PEP 38773, awarded in the 2005/6 Blocks Offshore Taranaki
Petroleum Exploration Permit Blocks Offer. Together these exploration permit interests cover from coast
to coast in Taranaki.
For information: call Lara Walker, Greymouth Petroleum, (09) 968-4633
Attachment:
Photo of Nabors Driling Rig# 64