Origin agrees to sell TAWN fields to NZ Energy for C$45M

Friday 1st June 2012

Origin Energy agreed to sell its interest in four Taranaki licences to New Zealand Energy Corp, a Canadian-listed oil and gas company for about C$42 million and a share of future royalties.

Origin, which also owns half of Contact Energy, will sell its Tariki, Ahuroa, Waihapa and Ngaere fields, known as the TAWN fields, along with its Waihapa production station and associated assets, it said in a statement.

The Australian energy company will keep a 10-year option to use eight wells within the fields for gas storage and retain 50 percent production rights to the Waihapa licence, it said. Contact's Ahuroa gas storage permit isn't included in the sale.

"The divestment of the TAWN assets will allow Origin to focus on its principal New Zealand activities including its interest in the Kupe Gas Project, the development of the Manutahi oil field and Canterbury Basin exploration activities," said Chris Bush, Origin's NZ general manager.

The sale is expected to be completed in October. Shares of Origin last traded on the ASX at A$12.88 and have declined 2.3 percent this year.

BusinessDesk.co.nz

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