New Zealand Oil & Gas farms into Perth basin permits
New Zealand Oil & Gas (Nzog) has executed a binding term sheet with ASX-listed Triangle Energy to farm into a 25% participating interest in Western Australian onshore production license L7 and exploration permit EP 437, it said on January 17.
After completion of the deal, the permits’ joint ventures will comprise Triangle (50% and operator), Nzog (25%) and Talon Energy (25%).
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As consideration for its 25% interest in L7 and EP 437, Nzog will contribute A$1.9mn towards past expenditure on the recently acquired Bookara 3D seismic data. In addition to the upfront costs, Nzog will fund 50% cost of the first well in L7 and 37.5% of the cost of the second well. With respect to the well to be drilled on EP 437, Nzog will fund 50% of the well costs.
"We have been looking to make an entry to the Perth basin for some time,” Nzog CEO Andrew Jefferies said. “It is an exciting province with many large gas discoveries and new production coming on into a growing market. Our technical team identified L7 and EP 437 as high-potential areas for hosting significant gas fields and the new 3D seismic is the right tool to de-risk the deeper Early Permian gas reservoirs.”
Nzog said it will fund the upfront costs and future farm in costs from current cashflows. Triangle will be appointed operator of the joint venture once established.