Oil and gas exploration company Kea Petroleum has made an oil discovery in a new sand reservoir in offshore New Zealand
The company announced that the discovery had taken place at Puka 2 in the lower Mount Messenger "Mako" Sands area.
An update from the company said: "The importance of the intersection of the lower Mako sands at Puka 2 cannot be overestimated. Interpretation of the recently acquired 3D seismic survey and further follow up drilling will be required to appraise and develop the upper Puka Sands discovered at Puka 1, the lower Mako Sand package discovered at Puka 2 and determine the ultimate size of the entire Puka field."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
The existence and quality of the lower sand package at Puka 2 is being seen as significant for the potential field size of the greater Puka field and for potential productivity from both the Puka 2 well and the Pukafield in general.
Ian Gowrie-Smith, Chairman of Kea Petroleum, commented: "We are delighted to have again struck oil at Puka. This new discovery, with its high quality sands, is likely to have much better flow rates than Puka 1. Kea can now look forward with confidence to an early and substantial cash flow."
Kea Petroleum's share price was up 21.67% to 9.12p at 09:25 on Thursday.
Bitcoin hits new heights - is now a good time to invest?
The value of Bitcoin has surged to a 20-month high. Why is Bitcoin rising and is now a good time to invest?
By Vaishali Varu Published
Gold hits record high - could it soar higher next year?
The yellow metal has hit a new all-time high. We look at market expectations for 2024, whether investors should sell and take profits, and how to invest in gold.
By Ruth Emery Published