New Zealand Oil & Gas Ltd. has reached a conditional agreement to acquire a 6.667% interest, 5% of which is carried, in Petroleum Exploration Permit 38451 in the Deepwater Taranaki basin offshore New Zealand.
If the transaction is completed, NZOG would acquire 6.111% from Global Resource Holdings LLLP and 0.556% from Randall C Thompson LLC. Each of those would continue to hold a 5% carried interest in the permit. The agreement is subject to conditions.
Other partners in the permit are Anadarko Petroleum Corp. operator with 50% interest and Hyundai Hysco 33.333%. They have preferential rights to the assignment, which they have 10 days to exercise.
It’s also conditional on New Zealand ministerial consent to the agreement, consents, and regulatory approvals being received for drilling a well on the Romney prospect of the permit, and the operating committee approving an authorization for expenditure for well costs.
PEP 38451 is the first exploration permit granted over the deepwater extension to Taranaki basin. It covers 16,380 sq km and includes multiple prospects and leads. The permit has a drilling deadline of Sept. 30, 2013.
Anadarko has publicly indicated it plans to use a drillship under construction, Noble Drilling Corp.’s Bob Douglas, for its offshore New Zealand drilling campaign in the 2013-14 drilling season.
Under the agreement, NZOG would pay $9.5 million in three tranches on fulfillment of conditions.