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- Release Date: 03/10/13 11:30
- Summary: JOINTV: NZO: Tui JV partners acquire Mitsui's 35% for USD15m
- Price Sensitive: No
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NZO
03/10/2013 08:30
JOINTV
REL: 0830 HRS New Zealand Oil and Gas Limited
JOINTV: NZO: Tui JV partners acquire Mitsui's 35% for USD15m
New Zealand Oil & Gas Ltd (ASX: NZO; NZX: NZO), AWE Limited (ASX: AWE), and
Pan Pacific Petroleum (ASX: PPP), via their subsidiaries, will increase their
respective interests in the Tui Area Oil Project following Mitsui's decision
to divest its 35% share of the project. The respective joint venture
interests and purchase consideration are detailed in Table 1 [See Attached]
TABLE 1
Company (via subsidiaries)
Current Tui interest
Tui % acquired from Mitsui
Tui interest post sale
Consideration (USD million)
AWE, Operator
42.5%
15%
57.5%
6.429
NZOG
12.5%
15%
27.5%
6.429
PPP
10%
5%
15%
2.143
The sale will have an economic date of 1 October 2013 and is subject to
approval by the New Zealand Minister of Energy and Resources. A Mitsui
affiliate will remain as oil marketing agent for the Tui project.
As part of the purchase agreement, Mitsui's interest in the Oi exploration
well will be assigned to AWE and New Zealand Oil & Gas. The respective
interests in the Oi exploration well, scheduled to be drilled before the end
of 2013, are detailed in Table 2 below:
TABLE 2
Company (via subsidiaries)
Current Oi interest
Oi % assigned from Mitsui
Oi interest post sale
Potential interest post buy-back**
AWE, Operator
25%
6.25%
31.25%
57.5%
NZOG
12.5%
6.25%
18.75%
27.5%
PPP
50%
-
50%
15%
** AWE and NZOG have the option to restore their equity in the Oi well to
57.5% and 27.5% respectively in any development through a buy-back of equity
from PPP by paying a promote on drilling costs.
The Joint Venture Partners in PMP 38158 are:
AWE Limited (via subsidiaries) (Operator) 42.5%
Mitsui E&P Australia Pty Ltd 35.0%
New Zealand Oil & Gas (via subsidiaries) 12.5%
Pan Pacific Petroleum (via subsidiaries) 10.0%
About the Oi Exploration Well
The Oi prospect is a 4-way dip closure created by compactional drape over an
underlying basement high, similar to the structures at the Tui, Amokura and
Pateke Fields, and is targeting the same producing reservoir level (F10
sandstones). Located 12km to the northeast of the Tui Field FPSO, the Oi
prospect represents a Prospective Resource of 11 million barrels of
recoverable oil (gross, unrisked P50 estimate). In the event of a commercial
discovery, existing excess FPSO production capacity at Tui will enable the Oi
Field to be tied-in relatively quickly and with low incremental operating
costs. The well will be located in approximately 120m of water with the
target horizon at 3,200m subsea.
John Pagani
External Relations Manager
M: +64 21 570 872
End CA:00241925 For:NZO Type:JOINTV Time:2013-10-03 08:30:05
