New Zealand Oil to acquire 10% stake in Petroleum Exploration

New Zealand Oil to acquire 10% stake in Petroleum Exploratio

New Zealand Oil & Gas Ltd has finally agreed to acquire a 10% stake in Petroleum Exploration Permit 38401, which lies in the offshore Taranaki Basin, approximately 150 km northwest of New Plymouth.

PEP 38401 contains the large Hoki oil prospect, which is scheduled to be drilled by the semi-submersible drilling rig Kan Tan IV later this year.

Hoki is the largest untested prospect in the western margin of the Taranaki basin. The Hoki-1 well will test both the primary Island Sandstone reservoir and a secondary target in the North Cape formation.

It should be noted that, New Zealand Oil & Gas is acquiring its 10% stake in the permit from OMV. The company had been talking for some time with OMV about acquiring a stake in the permit.

The terms of the latest agreement are kept confidential but New Zealand Oil & Gas's financial commitment including the drilling of the exploration well is expected to be approximately $10 million.

With latest development, New Zealand Oil & Gas will now be involved in the drilling of at least three wells over spring/early summer.

At present, New Zealand Oil & Gas has interests in five permits in the Taranaki Basin and one in the Canterbury Basin.