New Zealand

Tui Area Oil Fields

Location
PMP 38158, offshore Taranaki Basin

PPP equity
15% held through wholly owned subsidiary W M Petroleum Ltd

(increased from 10% effective 1st October 2013)

Operator
AWE 57.5%

Other partners
NZOG 27.5%

2P Ultimate reserves recoverable from existing infrastructure
40.8 MMbbls (includes 0.1 MMbbls assigned as fuel oil).

2P reserves remaining recoverable from existing infrastructure 1 October, 2014
4.3 MMbbls, or 4.2 MMbbls excluding 0.1 MMbbls fuel oil, net 630,000 barrels to PPP.

First production
30 July 2007

TUI-prospects_2014_sml

The Tui Area Oil Project constitutes three fields, Tui, Amokura and Pateke, which started production on 30 July 2007 and produce from four horizontal wells flowing to a permanently moored Floating Production Storage & Offloading vessel (“FPSO”), the Umuroa. The oil is processed on the Umuroa before being exported via export tankers destined for refineries on Australia’s eastern seaboard.

By 31 September 2014 the Tui Area Fields had produced 36.4 million barrels. Production is currently averaging around 3250 barrels per day gross, net 490 barrels per day to PPP.

Tui

Total reserves recoverable from the existing infrastructure are estimated by the operator AWE at 40.8 million barrels gross (2P), with remaining reserves at end September 2014 of based on the operator AWE’s estimates of 4.3 million barrels, net 4.2 million barrels (Company share 0.63 million barrels) after deducting a provision for oil which may be burned as fuel on the FPSO (fuel oil) during the remaining life of the fields. This use of oil for fuel started in November 2013 and is required due to the inevitable reduction in the amount of associated gas available for fuel as oil production declines.

The joint venture successfully appraised the Pateke Field in 2014 with Pateke-4H which has been completed as a development well and is scheduled for tie-back to the FPSO in Q1 2015, with production planned for Q2 2015. The reserves that may be attributed to the Pateke-4H tie in are currently being assessed by PPP.

The sales benchmark for the Tui crude price is linked to Platts Dated Brent pricing.