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NZOG buys into deepwater Taranaki permit

Thursday 11th October 2012

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New Zealand Oil & Gas has bought into a deepwater exploration permit in the Taranaki basis, building its relationship with Texan explorer Anadarko.

The Wellington-based company will pay US$9.5 million in three tranches for a 6.7 percent stake in the permit off the Taranaki coast, it said in a statement. It has agreed to acquire 6.1 percent from Global Resources Holdings and 0.6 percent from Randall C Thompson LLC, subject to certain conditions and ministerial consent.

The permit is the first granted over the deepwater extension in the Taranaki Basin, covering 16,380 square kilometres with a drilling deadline of Sept. 30 next year. Anadarko holds half the permit and is the operator, while Hyundai Hysco owns a third. Global Resources and Randall C Thompson will each keep 5 percent.

Anadarko is aiming to bring a drillship to New Zealand in the 2013/14 drilling season.

NZOG scuttled its option to drill the deepwater Barque project off the Canterbury coast after failing to find farm-in profits and after a review determined the risk profile was too high. That permit was adjacent to a licence area held by Origin Energy and Anadarko.

NZOG shares fell 0.6 percent to 84.5 cents, and have climbed 20 percent this year.

BusinessDesk.co.nz

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