AWE Ltd., Sydney, has farmed out its New Zealand onshore Taranaki basin permit PEP 55768, which includes the forthcoming Kohatukai-1 wildcat. The permit is southeast of New Plymouth in a prolific gas-producing region.
Currently AWE has a 51% operating interest and Mitsui E&P Australia has 49%.
The deal will see the firms farmout a combined 50% working interest in the permit to New Zealand Oil & Gas along with NZOG’s majority shareholder OG Oil & Gas (Singapore) Pte. Ltd.
Each of the incoming companies will acquire a 25% interest. AWE will remain operator with 12.5% interest and Mitsui will retain 37.5%. However, as Mitsui is now in the final throes of takeover of AWE, it means Mitsui will be operator with 50%.
The effective date of the farmout is Mar. 1 and completion of the deal is expected by the end of May.
The proposed Kohatukai wildcat is scheduled for drilling in this year’s fourth quarter and aims to evaluate dual objectives in the Eocene age Matapo and Mangahewa sands. The prospect itself is analogous to nearby Pohokura gas field.