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NZO
16/01/2014 13:32
MINE
REL: 1332 HRS New Zealand Oil and Gas Limited
MINE: NZO: Matuku update
New Zealand Oil & Gas believes its share price has been affected by the
previously released news that the primary target zone in the Matuku well in
PEP 51906 offshore Taranaki has not encountered significant oil or gas shows.
The well is currently at a depth of 4307 metres and drilling ahead to a total
depth of 4750 metres.
Until driling is complete and testing analysed, geologists have not formed a
complete view about the well or the implications for the play type in the
Kahurangi trough, which was thought to be a source kitchen for a success case
at Matuku.
No new information has come to hand that materially adds to information
released on Tuesday, 14 January, when the company confirmed that Kapuni Group
Farewell F Sands were found to be porous, but there were no significant gas
or oil shows.
Chief Executive Andrew Knight says a negative result in any well is always
much more likely than a positive result.
"Most wells will not make commercial discoveries of oil and gas. Our company
explores a portfolio of prospects in order to balance the investment risks
around individual wells. In the near future, New Zealand Oil & Gas is
involved in drilling in the Tui permit at Pateke and Oi, and next summer in
the Kaheru prospect off South Taranaki."
The Kan Tan IV began drilling operations on Saturday, 30 November. Matuku-1
is in 130 meters of water.
Participants in PEP 51906 are OMV New Zealand (Operator) 65 per cent; Octanex
22.5 per cent; and New Zealand Oil & Gas 12.5 per cent. If Matuku-1 is
successful, either New Zealand Oil & Gas or Octanex may exercise an option
for New Zealand Oil & Gas to acquire a further 5 per cent of Octanex's share,
which would equalise each company's interest at 17.5 per cent.
John Pagani
External Relations Manager
+64 21 570 872
End CA:00246123 For:NZO Type:MINE Time:2014-01-16 13:32:08
