UPDATE 2-NZ's Tui field reserves raised, AWE ups profit f'cast

(Recasts, adds AWE profit upgrade, analyst's comments, PERTH dateline, byline)

By Fayen Wong and Adrian Bathgate

PERTH/WELLINGTON, June 20 (Reuters) - Reserves at New Zealand's Tui oil field have been increased to 50.1 million barrels, prompting operator Australian Worldwide Exploration Ltd (AWE.AX) to raise its 2008 profit forecast.

AWE, which also owns 42.5 percent of the offshore field in the Taranaki region, said on Friday Tui's proven and probable (2P) reserves were up 6.6 percent from a prior estimate of 47 million barrels. It raised its 2008 profit forecast by 15 percent to A$630 million ($600 million).

"The new reserves valuation of 50 million barrels seems conservative but does fall within our expected range. The upgrade will definitely have a very positive and material impact on AWE's earnings," said Scott Ashton, an oil and gas analyst at BBY Ltd in Sydney.

New Zealand Oil and Gas Ltd (NZO.NZ)(NZO.AX), which owns a 12.5 percent share of the field, said the latest increase in Tui reserves, along with increasing crude oil prices, meant its stake was now worth NZ$1 billion ($762 million). That compared with an estimate before drilling began of NZ$300 million, NZOG said.

"Tui has exceeded all expectations," NZOG chief executive David Salisbury said in a statement.

Other partners in the Tui project include Mitsui E&P Australia Pty Ltd, a unit of Japan's Mitsui & Co (8031.T), and Pan Pacific Petroleum (PPP.AX) with a 35 percent and 10 percent interest respectively.

AWE said Tui's total production for the 2008/9 financial year was forecast to be 9 million barrels.

Shares in AWE were down 2.9 percent at A$3.97 by 0230 GMT, while NZOG's shares, which have gained 48.6 percent in the last year, were up 0.6 percent at NZ$1.57.

NZOG declined to provide future earnings forecasts due to volatile markets. In the six months to December 2007, net profit was NZ$41.4 million, compared to NZ$0.5 million in the 2006 half year.

At its half year result on February 27, NZOG said increasing oil prices and a faster-than-expected rate of production from Tui meant initial forecasts of earnings before interest, tax, depreciation and amortisation (EBITDA) of NZ$30 million in the year to June 2009, rising to NZ$50 million in 2010, were too conservative.

Besides Tui, NZOG has 35 percent of the Pike River Coal mine (PRC.NZ) and a stake in the Kupe oil and gas field in New Zealand, as well as interests in exploration permits.

NZOG said several additional exploration wells were planned for the Tui area in early 2010. (Editing by Lincoln Feast) ($1=NZ$1.31=A$1.05)