Apache Corp.’s New Zealand affiliate has informed TAG Oil Ltd., Vancouver, BC, that it will elect not to undertake the Phase 2 program under the East Coast basin farmout dated Sept. 1, 2011.
The farmout between Eastern Petroleum (NZ) Ltd., Orient Petroleum (NZ) Ltd., and Apache New Zealand Ltd. related to drilling in the East Coast basin. Eastern and Orient are indirect subsidiaries of TAG.
TAG intends to continue and complete the Phase 1 program. Under the farmout, ANZ is obligated to pay all costs and expenses actually incurred or committed in respect of the Phase 1 program.
TAG Chief Executive Officer Garth Johnson said, “We look forward to executing our long-term goal for the East Coast; to drill and hopefully prove the concept of unconventional oil potential in this frontier basin.”