NZO
08/07/2014 12:58
GENERAL
REL: 1258 HRS New Zealand Oil and Gas Limited
GENERAL: NZO: New unconventional interest in Indonesia
The right to explore for 'unconventional' oil and gas resources in Central
Sumatra, Indonesia, has been awarded to a consortium in which New Zealand Oil
& Gas holds an 11.25 per cent interest.
Central Sumatra is one of the major oil producing basins in South East Asia.
The MNK Kisaran production sharing contract covers a substantial sub-basin in
the same area as the conventional Kisaran production sharing contract where
the consortium partners last year successfully drilled for oil and gas. A
plan of development for that discovery is currently being prepared, and is
expected later this year.
The MNK Kisaran production sharing contract has been formally initialled
today. It is one of the first PSCs for unconventional oil and gas resources
issued in Indonesia. It is the first time New Zealand Oil & Gas has had
exposure to prospective oil and gas resources that qualify for concessional
Indonesia government terms. Without those concessions the resources could not
be developed commercially.
Unconventional resources are those where substantial volumes of oil and gas
are believed to be trapped in rocks, but the rate of production is severely
limited by low permeability. Commercial development of some of these types of
rock has been made possible by new extraction technology, particularly in
North America.
The consortium will study the effective application of these technologies in
onshore Sumatra over the next three years. The first firm, three-year
exploration work commitment includes geological and geophysical studies in
each year and drilling a vertical exploration well in year three.
The MNK Kisaran partners are:
New Zealand Oil & Gas: 11.25%
Bukit Energy 33.75%
Pacific Oil & Gas 55%
End CA:00252547 For:NZO Type:GENERAL Time:2014-07-08 12:58:16
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