Share
- Release Date: 16/03/12 17:50
- Summary: GENERAL: NZO: NZOG signs deal with AGL
- Price Sensitive: No
- Download Document 2.07KB
NZO
16/03/2012 15:50
GENERAL
REL: 1550 HRS New Zealand Oil and Gas Limited
GENERAL: NZO: NZOG signs deal with AGL
NZOG (New Zealand Oil & Gas Ltd) is pleased to advise that it has today
signed a conditional agreement to purchase a 15% stake in the Kaheru permit
(Petroleum Exploration Permit 52181) off the south Taranaki coast.
The agreement is with AGL Upstream Gas (MOS) Pty Ltd, a wholly owned
subsidiary of AGL Energy Ltd.
AGL acquired the interest in the Kaheru permit through its corporate
acquisition in 2010 of Mosaic Oil. The other partners in the permit are ROC
Oil (50% and Operator), TAG Oil (20%) and L&M Energy (15%).
NZOG will pay US$3m for AGL's stake, conditional on the joint venture making
a commitment to drill a well (and on joint venture and Crown approval of the
transfer of ownership from AGL to NZOG).
The permit currently has a drilling commitment deadline of 18 May 2012, with
a well to be drilled by 18 May 2013.
The permit lies to the east of NZOG's Kupe gas and oil field and is on trend
with the onshore Rimu and Kauri fields. The Kaheru prospect lies in 25 metres
of water, and is 8 kms from shore. Figures previously released from the joint
venture have estimated the mean recoverable reserves (unrisked) at 45 million
barrels (mmbbls) of oil in an oil case; or 200 billion cubic feet (bcf) of
gas and 7.5 mmbbls of condensate in a gas case.
Chief Executive Andrew Knight says the agreement signed today with AGL
provides a sensible way to expand NZOG's interests in its core Taranaki area.
"The Kaheru prospect is a long-recognised structure with the potential to
extend the producing trend southward. 3D seismic coverage and advanced
processing undertaken by the joint venture has enhanced the structural
imaging.
"We have clearly stated our desire to replenish our Taranaki Basin prospect
inventory, and we recognise the eastern margin of the Basin as favourable in
having a reliable oil and gas charge, and multiple proven reservoir systems.
"Kaheru is a welcome addition to our exploration portfolio".
End CA:00220830 For:NZO Type:GENERAL Time:2012-03-16 15:50:31
