ASX-listed Raisama quits Kakapo farm-in partnership with NZOG

Wednesday 13th February 2013

ASX-listed Raisama Energy has backed out of its 10 percent interest in the Kakapo oil and gas prospect in Taranaki, preferring opportunities in Asia instead.

The Perth-based company said it has written to partner NZOG Developments, a subsidiary of New Zealand Oil & Gas, and won't go ahead with its farm-in agreement on the Taranaki Basin permit, according to a statement lodged with the ASX yesterday. Raisama was to earn 10 percent working interest by paying a fifth of drilling costs up to A$3 million, it said.

"Raisama has not incurred, and is not liable for, any costs related to the proposed drilling of Kakapo," the company said. "While Kakapo is potentially a high impact well, the board is continuing to focus on the company's Asian strategy."

In September last year, NZOG confirmed it would drill the Kakapo prospect after facing a 'drill or drop decision' and was seeking at least one more farm-in partner and a suitable drilling rig. The company has previously said the prospect could be several times the size of the Tui or Maari fields.

The company is still looking for further farm-in partners and a drilling rig on suitable terms, NZOG chief executive Andrew Knight said in a statement today.

"New Zealand Oil & Gas believes the Kakapo prospect looks attractive as part of a portfolio of opportunities," he said.

NZOG shares fell 1.6 percent to 94.5 cents yesterday, and have gained 9.7 percent this year.

BusinessDesk.co.nz

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