ASX-listed Raisama Energy has backed out of its 10 percent interest in the Kakapo oil and gas prospect in Taranaki, preferring opportunities in Asia instead.
The Perth-based company says it has written to partner NZOG Developments, a subsidiary of New Zealand Oil & Gas and will not go ahead with its farm-in agreement on the Taranaki Basin permit, according to a statement lodged with the ASX yesterday.
Raisama was to earn 10 percent working interest by paying a fifth of drilling costs up to $A3 million, it says.
"Raisama has not incurred, and is not liable for, any costs related to the proposed drilling of Kakapo," the company says. "While Kakapo is potentially a high-impact well, the board is continuing to focus on the company's Asian strategy."
In September last year, NZOG confirmed it would drill the Kakapo prospect after facing a "drill or drop decision" and was seeking at least one more farm-in partner and a suitable drilling rig. The company has previously said the prospect could be several times the size of the Tui or Maari fields.
The company is still looking for further farm-in partners and a drilling rig on suitable terms, NZOG chief executive Andrew Knight says in a statement today.
"New Zealand Oil & Gas believes the Kakapo prospect looks attractive as part of a portfolio of opportunities," he says.
NZOG shares fell 1.6 percent to 94.5 cents yesterday and have gained 9.7 percent this year.