Estimated oil flows from the offshore Tui field in Taranaki have been upgraded for a second time and are almost double the estimate a year ago at 50.1 million barrels.
The upgrades, steady production flows and record global prices, spiking to almost $US140 ($NZ180) per barrel earlier this week, have been a boon for major stakeholders Australasian Worldwide Exploration (42.5%) and New Zealand Oil and Gas (12.5%).
The initial "proved and probable reserves" for Tui Area Oil Fields have been increased from 47 million to 50.1 million barrels, following a detailed field reassessment, with New Zealand Oil and Gas Ltd's share of the additional reserves equating to almost 400,000 barrels, NZOG chief executive David Salisbury said.
At present oil prices and exchange rates, this upgrade represented a gross value to NZOG of about $NZ$70 million, he said.
"Tui has exceeded all expectations. Ahead of production starting on July 30 last year, we had reserves of 27 million barrels, an expected first year production of 9 million barrels and an international oil price of about US$70 a barrel.
"Less than a year on, the reserves figure has almost doubled, production is about to pass the 14 million barrel mark and Tui oil is selling for over US$130 a barrel," Mr Salisbury said.
The NZOG share price has steadily risen more than 50% since July and has been trading beyond $1.50.
