NZOG farms out quarter stake in Kaheru prospect

BUSINESSDESK: New Zealand Oil & Gas has farmed out a 25% stake in its Kaheru prospect off the South Taranaki coast to ASX-listed Beach Energy for $US3 million.

The Wellington-based company will keep 35% of the permit, with Beach holding 25% and Tag Oil 40%, it says in a statement.

NZOG is the operator of the exploration permit. The deal is subject to ministerial consent and will see Beach take on a quarter of future joint venture costs and pay the first $US3 million of NZOG's bill.

"The Kaheru prospect fits well into NZOG's portfolio as it provides an exposure to an untested extension of the proven reservoirs of the eastern Taranaki region," chief executive Andrew Knight says.

"Beach is a strong exploration company. Its investment in the project is a demonstration of confidence in a prospect that NZOG is enthusiastic about."

The mean recoverable reserves in the prospect are estimated to be some 45 million barrels of oil in an oil case, or 200 billion cubic feet of gas and 7.5 million barrels of condensate in a gas case.

NZOG's shares (NZX: NZO) were down half a cent to 86 cents today, and Beach stock rose 1.5% to $A1.37 on the ASX.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6952 0.0000 0.00%
AUD 0.8901 0.0000 0.00%
EUR 0.5907 0.0000 0.00%
GBP 0.5276 0.0000 0.00%
HKD 5.4294 0.0000 0.00%
JPY 78.9230 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1278.6 -9.430 2017-10-20T00:
Oil Brent 57.8 0.550 2017-10-20T00:
Oil Nymex 51.9 0.580 2017-10-20T00:
Silver Index 17.0 -0.177 2017-10-20T00:

Indices

Symbol Open High Last %
NZX 50 8124.1 8142.3 8124.1 0.07%
NASDAQ 6633.4 6640.0 6605.1 0.36%
DAX 13057.8 13063.6 12990.1 0.01%
DJI 23205.2 23328.8 23163.0 0.71%
FTSE 7523.0 7560.0 7523.0 0.00%
HKSE 28360.0 28519.8 28159.1 1.17%
NI225 21391.0 21489.3 21448.5 0.04%
ASX 5896.1 5924.9 5896.1 0.17%