News from NZ's neighbor. Kea is a logical choice for third party processing. Ian Brown is ex-NZ. I am not sure, they may be doing it already. It looks like they have had sand problems similar to NZ but may have it sorted.
Kea underway at Puka-3
Felicity Wolfe Wed, 23 Jul 2014
Kea Petroleum began drilling its Puka-3 appraisal well yesterday.
The well, which it hopes will expand production from the field, is being drilled into Mt Messenger formation sands expected at a vertical depth of about 1,580 metres.
The firm is targeting the formation following interpretation of a 50 square-kilometre 3D seismic reflection survey in the south-western part of the permit.
Puka-3 is being drilled from the same well pad as its producing Puka-1 and -2 wells. The work is being carried out using Drill Force’s rig 6 - which was also used to drill Puka-2 last year.
Ian Brown, managing director of Kea’s New Zealand operation, says it is still very early in the programme, but that drilling began on schedule.
“It’s all gone to plan so we are very pleased with it,” he says. “We are looking forward to finishing this well and seeing what we have got.” Phased programme
The new well is part of the first phase of a $5 million programme to boost production from the field. The work is being 80 per cent funded by MEO Australia.
Kea shares on the London Stock Exchange’s Alternative Investment Market rose to 2.35 pence yesterday – a three month high.
Melbourne-based MEO took up a 30 per cent stake in the permit, PEP 51153, in April. The deal is helping Kea fund the Puka-1 and -2 work-overs and the testing of two zones within the suspended Douglas-1 well in the permit.
MEO will decide after the current work whether to commit another $7.5 million to part-fund a second phase of further seismic. This phase would also include an additional well and the construction of a new centrally-located well pad to host additional processing capacity. Production
The existing two Puka wells had produced more than 39,500 barrels of oil in February. But output from Puka-2 was slashed between February and early June after fine sand contributed to the mechanical failure of a down-hole pump.
Last month the firm completed a work-over programme on the well and replaced the pump.
Brown says the Puka-2 refurbishment has worked well. He didn't elaborate.
Kea hopes Puka-3 will give it a better understanding of opportunities in the permit.
Chairman Ian Gowrie-Smith says the firm has “eagerly been awaiting the drilling."
“The results will help us to gain a better understanding of the resource size and deliverability, to enable us to plan for further commercial development."
Brown would not say how long the Puka-3 drilling programme is expected to take.