New Zealand Oil & Gas acquires stake in Taranaki basin permit

Offshore staff

WELLINGTON, New Zealand -- New Zealand Oil & Gas Ltd (NZOG) has agreed to acquire a 10% stake in Petroleum Exploration Permit 38401 in the offshore Taranaki basin from OMV for $10 million. PEP 38401 contains the large Hoki oil prospect, which is scheduled to be drilled by the semsiub Kan Tan IV later this year.

Subject to partner and ministerial approval, the new participating interests will be:
AWE New Zealand (Operator) - 50%
OMV New Zealand - 21.25%
Todd Petroleum Mining - 18.75%
New Zealand Oil & Gas - 10%

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

NZOG is scheduled to drill at least three wells over spring/early summer. Following the drilling of Hoki, the Kan Tan IV will move to the Tui permit area, where it will drill at least two prospects close to the existing Tui oil fields.

“NZOG's internal assessment is that Hoki has the potential to be a large oil-bearing reservoir,” says David Salisbury, NZOG’s chief executive. “An additional attraction is that the prospect is ‘drill mature’ and that drilling arrangements are already in place. PEP 38401 is a very welcome addition to our current exploration portfolio."

NZOG now has interests in five permits in the Taranaki basin and one in the Canterbury basin.

07/22/2009