PLANNED shut-ins at the OMV New Zealand-operated Maari and Manaia fields helped to reduce Cue’s oil production by 14.3 per cent during the March quarter.
Average production from the fields, on PMP 38160, during the March quarter was about 11,659 gross barrels of oil per day (bopd), of which 583 was net to Cue – which holds a 5% stake in the project.
Cue’s net share of oil sales in the quarter from the fields was 38,200 barrels, which generated $1.6 million in revenue during the quarter.
The fields had generated 134,892 barrels of oil and $8.87 million in revenue in the six months to 31 December 2015, the company said in its half year announcement in February.
Cue said an upgrade to the Maari floating production, storage and offloading vessel was well underway, proceeding as planned at a net cost of about $3 million.
An extensive multi-well workover campaign was also proceeding as planned, Cue said.
“While production during the mooring intervention is continuing, some wells experienced short term shut-ins for operational reasons, resulting in a daily gross production range of between about 9,000 and 13,000 barrels of oil per day during the quarter,” the company said.
Repairs to a water injection line will follow the mooring upgrade, enhancing daily production due to resumed pressure support.
These changes and upgrades are expected to be completed by mid-May, with production stabilisation and optimisation work expected during the June quarter, once the benefits from the workovers have been realised.
This is anticipated to put production from the field at about 12,000 bopd for the remainder of the 2016 calendar year, Cue said.
OMV holds a 69% operating stake in PMP 38160, with Todd Maari holding 16% and Horizon Oil 10%.
Cue is also set to decide whether to proceed to the acquisition or reprocessing of seismic data over PEP 51313, in which it is also a partner with OMV New Zealand, during the June quarter.
The company had started a formal withdrawal from PEP 51149, operated by Todd Energy, after the Te Kiri North 1 well hit non-commercial hydrocarbons shows in January.