The timing was good for New Zealand Oil & Gas Ltd (TSX: NZO) to put on its marketing cap for its South Island permits seeking new farm-in partners.
The leading New Zealand explorer (NZOG) presented its opportunities at the PESA (Petroleum Exploration Society of Australia) Deal Day in Adelaide on Monday.
Showing the opportunities for NZOG was its vice president for exploration and production, Dr Chris McKeown.
The licences presented were PEP 52717 on which NZOG was granted changed conditions by the NZ Government to extend the drill or drop conditions to April, 2019; PEP 55794, taking in the Kaipatiki prospect which, with the withdrawal of Woodside Energy, gives NZOG the right to 100% and operatorship.
McKeown also pointed out that other offshore permits available in NZ for partners were PEP 50119, with Shell exiting NZ and now having OMV as likely operator, and the Wherry licence PEP 38264 where Beach Energy and Discover were still involved following the decision of Anadarko Petroleum to depart.
Delegates were told that Kaipatiki has a mean 750 mmbbl of liquids and 7.3 tcf gas in place within a “proven petroleum system.” There was a drill or drop option set for March 31, 2020.
McKeown said the licence has an excellent address in the Great South Basin and it was a frontier area with seven offshore wells, including the Kawau-1 discovery. There was excellent port infrastructure within 200 kilometres.
PEP 52717 takes in the Barque prospect offshore from Oamaru with NZOG as operator and Beach Energy as equal 50% partner. Barque was on a licence that has had six offshore wells, including Galleon-1 which flowed 2,200 bbl liquids and 10 mmcf gas to surface.
NZOG said it was jointly farming out Barque with at least 50% equity available and possibly operatorship to a company qualified on frontier operations. Offers for this proposal would be required by November.
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