Australia's AWE has agreed to farm out an interest in its operated onshore permit in New Zealand to local company New Zealand Oil & Gas (NZOG) and its majority shareholder, OG Oil & Gas.
Australia's AWE has agreed to farm out an interest in its operated onshore permit in New Zealand to local company New Zealand Oil & Gas (NZOG) and its majority shareholder, OG Oil & Gas.
The farm out is for its permit PEP55768 onshore Taranaki basin, which includes the planned Kohatukai-1 well. PEP55768 is located southeast of New Plymouth in a prolific gas producing region and contains a number of substantial prospects.
The current joint venture partners in PEP55768 are AWE, with a 51 per cent operating interest, and Mitsui E&P Australia (Mitsui), with a 49 per cent interest. The agreement will see the joint venture farm down a combined 50 per cent working interest to New Zealand Oil & Gas and its majority shareholder, OG Oil & Gas (Singapore).
Each incoming company will acquire a 25 per cent working interest in the permit. At completion of the farmout, AWE will remain as Operator with a 12.5 per cent interest and Mitsui will retain a 37. per cent interest.
The deal is expected to be completed by the end of May 2018, subject to regulatory approvals.
The Kohatukai-1 well is scheduled to be drilled in the fourth quarter of CY 2018 to test dual objectives in the Eocene Matapo and Mangahewa sands targeting a prospect that is analogous to the nearby Pohokura Gas Field.
Source: Pipeline ME
