NEW ZEALAND TO SEE EXPLORATION SURGE

New Zealand has granted 17 petroleum exploration permits (PEPs), more than doubling the number of permits in the country. The work programs submitted with the PEP applications provide for spending of as much as $170 million (N.Z.) the next 5 years. That covers about 5,460 line km of new seismic data, reprocessing of 4,700 line km of existing seismic data, and drilling as many as 25 wildcats. The latest bid round covers about 34,000 sq km and three basins (see map, OGJ, Aug. 14, p. 19).

Nov. 13, 1995

2 min read

New Zealand has granted 17 petroleum exploration permits (PEPs), more than doubling the number of permits in the country.

The work programs submitted with the PEP applications provide for spending of as much as $170 million (N.Z.) the next 5 years. That covers about 5,460 line km of new seismic data, reprocessing of 4,700 line km of existing seismic data, and drilling as many as 25 wildcats. The latest bid round covers about 34,000 sq km and three basins (see map, OGJ, Aug. 14, p. 19).

They are the first offered in New Zealand since a sweetened petroleum/mineral royalty regime went into effect last February (OGJ, Feb. 20, Newsletter). Another offer of acreage in the sparsely explored East Coast basin off North Island is expected to close in February 1996.

Thirteen of the newly awarded permits lie in the producing Taranaki basin on North Island, eight onshore and five offshore. Two permits are in the offshore Canterbury basin and two in the onshore Westland basin, both in the South Island area.

Fourteen companies will participate in exploration related to the latest PEP round.

Australian companies participating and their respective PEP areas are MIM Petroleum, Bligh Oil & Minerals, and Kiwi International Resources onshore Taranaki; BHP Petroleum and Ampolex offshore Taranaki; Pacrim Energy offshore Canterbury and onshore Westland; and Cultus Petroleum onshore Westland.

Winning New Zealand firms and their respective PEP areas are Petro-corp onshore/offshore Taranaki, Petroleum Resources onshore Taranaki and onshore Westland, and Southern Petroleum onshore Taranaki.

Other winning bidders are the U.K/s Goal Petroleum onshore Taranaki, Houston's Swift Energy Co. onshore Taranaki, Canada's Durum Energy Corp. onshore Taranaki, and Germany's Preussag Energie GmbH offshore Taranaki.