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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Lawyer Adina Thorn discusses her decision to launch a class action against Carter Holt Harvey over its Shadowclad product
- Westpac senior economist Satish Ranchhod says student inflows continue to be a big driver of growth
- Volpara chief executive Ralph Highnam on his company's $9.6m loss and fast-growing revenue
- NBR's Jenny Ruth on what analysts are saying about Ebos' $A154m HPS purchase
- NBR Radio: best of the week ended May 26, with Grant Walker