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- Release Date: 29/10/12 15:26
- Summary: MINE: NZO: NZOG farms out Kaheru, JV commits to drill
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NZO
29/10/2012 13:26
MINE
REL: 1326 HRS New Zealand Oil and Gas Limited
MINE: NZO: NZOG farms out Kaheru, JV commits to drill
New Zealand Oil & Gas has farmed out a 25 per cent equity interest in its
Kaheru prospect off the South Taranaki coast to Beach Energy.
The joint venture has confirmed that it will drill when a suitable rig can be
negotiated.
Subject to the farm-out receiving ministerial consent, NZOG will retain 35
per cent of the permit, Beach Energy will have a 25 per cent interest, and
TAG Oil 40 per cent. NZOG is the operator.
In addition to paying its 25 per cent share of future joint venture costs,
Beach Energy will pay the first US$3 million of NZOG's share of the well
costs.
The Kaheru prospect is in 25 metres of water 8 kilometres from shore. The
permit lies to the east of the producing Kupe gas and oil field, in which
NZOG has a 15 per cent interest. It adjoins the onshore Rimu and Kauri
fields.
Chief executive Andrew Knight is welcoming Beach Energy's interest in the
venture.
"Beach is a strong exploration company. Its investment in the project is a
demonstration of confidence in a prospect that NZOG is enthusiastic about.
"The mean recoverable reserves (unrisked) are estimated 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.
"NZOG is stepping up exploration activity. The Kaheru prospect fits well into
NZOG's portfolio as it provides an exposure to an untested extension of the
proven reservoirs of the eastern Taranaki region."
On Friday NZOG confirmed drill site preparation is underway at the company's
Kisaran prospect in onshore Sumatra, Indonesia. Earlier, NZOG confirmed its
intention to drill the Kakapo prospect off South Taranaki, in which it
currently has a 90 per cent interest.
NZOG's Annual Meeting will be held tomorrow, Tuesday 30 October 2012 at
9.30AM. It will be followed by an investor/analyst conference call at 2.00PM.
Attachment: Permit Map
End CA:00228974 For:NZO Type:MINE Time:2012-10-29 13:26:15
