NZ Oil & Gas to drill first well overseas
Drilling will begin in December, or sooner, at New Zealand Oil & Gas's Kisaran block in Indonesia.
In a release to the NZX, NZOG says drill site construction is under way and a drilling rig tender awarded for two onshore exploration wells in Sumatra.
The Kisaran joint venture is 55% owned and operated by Pacific Oil & Gas and 22.5% each by NZOG and Bukit Energy.
Chief executive Andrew Knight says it will be the first well NZOG has drilled for more than two years and the first outside New Zealand.
“While New Zealand will always be a core focus for NZOG, we are also putting effort into opportunities in Indonesia and Tunisia to broaden our exploration portfolio and risk profile.”
The Kisaran block is located in the most prolific oil producing basin in south-east Asia and the first exploration well will appraise an undeveloped oil discovery made in 2003.
NZOG’s annual meeting will be held tomorrow morning in Wellington.
The company's shares (NZX: NZO) last traded at 86.5 cents and have gained 22.6% this year.