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- Release Date: 28/05/12 11:39
- Summary: MINE: NZO: Winning bid on Indonesian permit
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NZO
28/05/2012 09:39
MINE
REL: 0939 HRS New Zealand Oil and Gas Limited
MINE: NZO: Winning bid on Indonesian permit
NZOG (New Zealand Oil & Gas Ltd) and its partners have been announced as
winning bidder for a Production Sharing Contract (PSC) over a promising
exploration block in onshore northern Sumatra. Formal award of the PSC is
anticipated within the next couple of months.
In August 2011, a Joint Study Agreement (JSA) was signed to conduct studies
of the area in conjunction with an Indonesian university. By funding these
studies the applicants earned a priority right over the block which was
offered for direct bids in the first 2012 bid round administered by the
Indonesian government agency, Migas. The bid round closed on 14 May and the
successful bid for the Bohorok block was announced by Migas at the closing
ceremony of the Indonesia Petroleum Association 2012 Convention on Friday
afternoon local time.
As a result of the JSA work and a review of historical data, a portfolio of
leads and prospects have been identified within the Bohorok block, which
covers a total area of 5,022 sq km at the southeast end of the North Sumatra
Basin, close to the major city of Medan. The northern part of the Bohorok
block is adjacent to and partly surrounds several oil and gas fields, while
the southern and eastern parts have only experienced limited exploration to
date.
Under the PSC, the joint venture will be committed to an initial 3 year
exploration work programme including the acquisition of 200km of 2D seismic
and a range of geological studies. Including a US$1 million signature
payment, the budget for the 3 year exploration period is approximately US$4
million, of which NZOG's share is 50%.
NZOG will have a 45% stake in the Bohorok PSC. Its partners are Bukit Energy
Asia Pte Ltd (45%, Operator) and PT Surya Buana Lestarijaya (10%).
Indonesia is one of three areas, along with New Zealand and Tunisia, where
NZOG is focussing its efforts. Chief Executive Andrew Knight says that by
using its knowledge and capabilities, and working with good partners, NZOG is
able to create exploration opportunities.
"Bohorok is an excellent example of this approach. The permit lies in a
prolific basin; we have been able to gain a good understanding of the
prospectivity through the JSA and are now to secure a PSC over the area. A
sensible exploration programme will be prepared and we are cautiously
optimistic of achieving successful outcomes."
NZOG also has a 22.5% stake in the Kisaran permit in central Sumatra, where
at least one well is planned for later this year, and has additional Sumatra
JSA's in progress.
End CA:00223311 For:NZO Type:MINE Time:2012-05-28 09:39:27
