TODD Energy has plugged and abandoned the Te Kiri North 1 well, drilled on permit PEP 51149, onshore in the Taranaki basin, after the oil found well proved not to be a commercially viable discovery.

Project partner Cue Energy, which holds a 20 per cent stake in the permit, said the well had reached a total depth of 4,629 metres in late January after being spudded in mid-December.

“The well encountered hydrocarbon shows in the Miocene Mt Messenger formation, and a wireline logging suite was run to evaluate the section,” Cue said in an announcement.

“The logs indicated low reservoir quality and the decision was made not to further evaluate the zone.”

The Eocene objective was a structural trap predicted to be up-dip from the bearby Te Kiri 1 well, but unfortunately came in low to prediction,” the company added.

Drilling of the well fulfilled Cue’s obligations over the permit, the company added.

Another joint venture between Todd Exploration and Cue Energy, on the offshore PEP 54865, also ran into trouble during the quarter after failing to secure a seismic vessel for work during the first quarter of 2016.

Under the permit requirements the joint venture must acquire 28,500 hectares of seismic data, process and interpret it before June 2016.

Failing to secure such a vessel will mean that the joint venture will have to defer the seismic acquisition work program until a suitable vessel can be found, Cue said in its December quarter report.