NZX-listed New Zealand Oil & Gas (NZOG) has gained approval by the regulator to change conditions and extend duration for the petroleum exploration permit 52717 (PEP 52717) Clipper in the Canterbury Basin, off New Zealand.
New information is being analyzed relating to the Canterbury Basin where NZOG’s best estimate of prospective resource in the Barque prospect is equivalent to 530 MMbo, with some 265 MMbo net to the firm.
According to NZOG, this is equivalent to at least twice the amount of producible gas in Taranaki's Maui discovery, which has been in production since the 1970s.
"The Barque prospect in Clipper is a potential game changer for the Canterbury region, for New Zealand and for our company," said Andrew Jefferies, acting chief executive, NZOG.
"The Government and New Zealand Petroleum & Minerals deserves considerable credit for accommodating a change of conditions to allow further study of this permit, in recognition of its considerable economic potential and the need for further high quality scientific analysis."
The conditions approved by New Zealand Petroleum & Minerals now require a decision on whether to commit to drilling an exploration well by 10 April 2018, and if a positive drill decision were made it would have to be drilled by 10 June 2020.
NZOG has a 50% interest in Clipper, and is the operator. Joint venture (JV) partner Beach Energy holds the remaining stake. The JV is also in talks with potential farm in partners that have the scale and capability to operate a large prospect in deepwater.
Meanwhile, Cue Energy Resources, in which NZOG holds a controlling share, has announced that UK oil giant BP has acquired substantial equity interest in two of Cue’s 100%-owned North West Shelf permits in the Carnarvon basin, offshore Western Australia.
Under the agreement, BP will acquire 80% equity and be operator of WA-409-P and will fund 100% of the work program required under the permit for the first three years of the license renewal.
BP also has an option through to May 2017 to acquire 42.5% equity in WA-359-P. If BP exercises this option, 50% of the cost of drilling a well in WA-359-P will be funded. Additionally, BP will assist Cue in securing a partners with the credibility, funding and technical expertise to join them drill an exploration well in WA-359-P, scheduled for 1H 2018.
Image: Map of Clipper prospect in New Zealand / NZOG
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