TAG Oil Ltd., Vancouver, BC, will acquire exploration permits totaling more than 2 million acres in the East Coast and Canterbury basins in New Zealand from Rawson Taranaki Ltd. and Zeanco (NZ) Ltd. for $2.3 million (Can.), subject to ministerial approval.
PEP 52589, PEP 52676, and PEP 53674 are located in favorable geological areas that offer high-impact exploration opportunities in the two basins, TAG Oil said.
The acquisition is complementary to TAG’s existing East Coast basin exploration portfolio, expanding its current play area to the southern extent of the basin. The acquisition also positions TAG with more than 1 million acres in the lightly-explored Canterbury basin, an emerging frontier in which large international energy companies plan to test offshore prospects.