Oz AWE Farms Out NZ Stake

Australian AWE and its joint venture partner Mitsui have farmed out a combined 50% stake in New Zealand permit onshore Taranaki basin, AWE said April 9.

The permit, PEP 55768, is southeast of New Plymouth in “a prolific gas producing region and contains a number of substantial prospects.”

At present, AWE has a 51% operating interest, and Mitsui E&P Australia 49% interest. The agreement will see the joint venture farm down a combined 50% working interest to NZOG and its majority shareholder, OG Oil & Gas (Singapore). Each incoming company will acquire a 25% working interest in the permit, AWE said. At completion of the farmout, AWE will remain as operator with 12.5% and Mitsui will have 37.5%.

The effective date is March 1 2018 and completion is expected by the end of May 2018, subject to regulatory approvals.

The permit contains the Kohatukai-1 well, scheduled to be drilled in Q4 2018 to test targets in the Eocene Matapo and Mangahewa sands, which is seen as analogous to the nearby Pohokura gas field, according to AWE.