UK-based Kea Petroleum had to shut in production indefinitely Wednesday at its Puka site in Taranaki, New Zealand due to ongoing mechanical problems.
Over the last few weeks, Kea said it has been working hard to resolve mechanical problems with the Puka-1 well while continuing to produce from Puka-2.
Details about the mechanical issues have not been disclosed.
“Unfortunately the problem cannot be resolved with the equipment currently available,” Kea Petroleum said.
The company is currently considering an alternative longer term plan for the site.
Due to current volatility in the crude market the Kea’s board decided to keep Puka shut in until “the economics of continued site operations improve.”
The Puka-1 well was drilled in 2012 and encountered a 40 meter interval of Mt. Messenger reservoir quality sands with a net pay of between 4.5 meters and 9 meters.
Sampling at Puka-1 with indicated an “excellent quality” light oil with a density of 43.7 degrees API.
Further tests confirmed that Puka is an oil and gas field of commercial dimensions with maximum flow rates of 310 barrels of oil per day and 1.8 thousand cubic feet per day of gas.