Projects

PMP 38160, Maari, New Zealand

Horizon Net Working Interest (Production License) – 26.00%

Asset Overview

  • Maari, New Zealand, 26%
  • JV: OMV (69% – Operator), Cue Energy (5%)
  • Maari/Manaia generates approximately 35% of Horizon operating cashflow
  • Maari crude continues to attract strong premiums with an average premium to dated Brent of ~US$6/bbl for the half-year
  • Cash operating costs for the half-year remained below $25/bbl produced for the half-year

Recent Highlights

29 January 2024 

  • HY24 production averaged above 5,100 bopd gross (~1,300 bopd net) following the successful workover of the Manaia-1 well. Natural field decline during the half year was substantially offset by a combination of a successful MR2A workover, ongoing water injection support and the maintenance of high facility uptime
  • Near-term focus to reinstate MR6A production
  • The operator received the FPSO class extension certificate which allows the facility to operate for a further five years through to April 2028
  • Works to extend field life beyond the current December 2027 permit expiry continued during HY24 – lodgment of licence extension application expected later this calendar year
  • Provisioning of decommissioning funding continued during the half-year

Background

The Maari oil field is New Zealand’s largest producing oil field. It lies 80km off the south Taranaki coast in 100m water depth. Oil is produced from the production wells located on a wellhead platform (Tiro Tiro Moana) and piped to a floating production and storage vessel, the FPSO Raroa, anchored 1.5km away. Every three months or so the oil is offloaded to tankers for transportation to refineries in Australia and South-East Asia.

In 2003, Horizon acquired a 10% participating interest in the PEP 38413 exploration licence (the predecessor to the PMP 38160 development licence) which contained the Maari and Manaia discoveries.  Project FID was taken in 2005 on the basis of 50 million barrels of estimated reserves and an expected 10 to 15-year field life, and production began in February 2009 from six wells in the primary Maari Moki reservoir.

In September 2009, the MR9 well was drilled into the M2A formation found 50 metres above the main Maari Moki oil bearing sands, and a maximum monthly field rate of over 29,000bopd gross was achieved.  In October 2010, production started from an 8km extended reach well (MN1) which was drilled from the Maari wellhead platform to appraise and produce from the Manaia Mangahewa in the previous year.

In 2014/15, the Maari Growth Project saw the drilling of four new sidetracked production wells which increased the field’s monthly field rate back to above 15,000bopd.

In November 2017, Horizon increased its interest in the project to 26% through the 16% purchase of the Todd holding for US$13.1 million (net aggregate payment at completion).

Currently, there are eight production wells exploiting four different reservoir intervals, and three water injection wells servicing the  Maari Moki reservoir.  Monthly average field rates have stabilized at above 5,000bopd.

In 2019, OMV New Zealand announced the intended divestment of its 69% interest in the Maari field to Jadestone Energy.  In 2022, after ongoing engagement with Jadestone Energy, a mutual decision was made to no longer pursue the transaction.

In 2023, OMV again announced the intended divestment of its 69% interest in the Maari field.  To date this divestment has not been finalised.

Reserves and Resources as at 30 June 2023

Proved and Proved + Probable Reserves (Horizon net)

New Zealand PMP 38160
1P Total Liquids MMbbl
2P Total Liquids MMbbl
Developed: Maari, Manaia
1.0
2.1
Closing Balance 30 June 2023 (arithmetic summation)
1.0
2.1

Contingent Resources (Horizon net)

New Zealand PMP 38160
2C Total Liquids MMbbl
2P Raw Gas Bcf
2C Sales Gas PJ
Maari, Manaia
3.4
Closing Balance 30 June 2023 (arithmetic summation)
3.4
0
0

Prospective Resources (Horizon net)

New Zealand PMP 38160
2U Total Liquids MMbbl
2U Raw Gas Bcf
2U Sales Gas PJ
Maari, Manaia
-
Closing Balance 30 June 2023 (arithmetic summation)
0
0
0

Cautionary statement: Prospective Resources are the estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. The estimates have both an associated risk of discovery and risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of hydrocarbons. The 2U Prospective Resources in the above table are unrisked volumes.

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Sydney NSW 2000

T: +61 2 9332 5000

 

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T: +61 2 9332 5000

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