Monday 29th October 2012
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New Zealand Oil & Gas has farmed out a 25 percent stake in its Kaheru prospect off the South Taranaki coast to ASX-listed Beach Energy for US$3 million.
The Wellington-based company will keep 35 percent of the permit, with Beach holding 25 percent and Tag Oil 40 percent, it said in a statement. NZOG is the operator of the exploration permit. The deal is subject to ministerial consent, and will see Beach take on a quarter of future joint venture costs and pay the first US$3 million of NZOG's bill.
"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," chief executive Andrew Knight said. "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 in the prospect are estimated to be some 45 million barrels of oil in an oil case, or 200 billion cubic feet of gas and 7.5 million barrels of condensate in a gas case.
NZOG's shares were unchanged at 86.5 cents, and Beach stock rose 1.5 percent to A$1.37 on the ASX.
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