A subsidiary of ASX-listed Origin Energy has struck a deal with a US company to drill in the Canterbury basin.Origin, which also today reported a 28% increase in underlying profit to $AU355 million in the period to December 31 and a 3% or $AU20 million in
A subsidiary of ASX-listed Origin Energy has struck a deal with a US company to drill in the Canterbury basin.
Origin, which also today reported a 28% increase in underlying profit to $AU355 million in the period to December 31 and a 3% or $AU20 million increase in overall underlying EBITDA to $706 million, made the announcement on behalf of its New Zealand operations, Origin Energy Resources NZ Limited.
It will farm out a 50% interest in its offshore permit (PEP 38262) to Anadarko New Zealand Company – a subsidiary of the US Anadarko Petroleum Corporation (NYSE:APC).
Anadarko also has an option to acquire half of the adjoining permit PEP 38264, at a cost of $US100,000 (exercisable by April 8, 2010).
Origin’s executive general manager, geoscience and exploration new ventures, Rob Willink, said the company had been excited about the potential of the frontier Canterbury basin since it first studied the area in 2005.
“We are now fortunate to have been joined by a company with a proven capability operating in challenging deep water environments and this expertise will facilitate the safe, efficient and cost effective execution of the exploration program before us,” he said.
Anadarko undertook a three-dimensional seismic survey of the Carrack/Caravel prospect in 2009, recorded by Origin but at Anadarko’s cost. Anadarko will pay the first $US30 million of joint venture costs of drilling an exploration well – about 1,000 metres deep.
After that, costs will be evenly split.
This prospect has the potential to hold more than 500 million barrels of oil equivalent, Origin said.
A decision on drilling (subject to ministerial approval of the farm-in) is required by August 21 this year.
The 390 square kilometre prospect is (aerially) significantly bigger than New Zealand’s largest gasfield, Maui (at 160 square kilometres).
