Recent takeover target New Zealand Oil & Gas (NZOG) has asked for a time extension to its permit off the coast of Oamaru, before it has to commit to drilling the deepwater project.
NZOG said it was seeking the extension from permit agency NZ Petroleum & Minerals to allow time to analyse new information about the Barque prospect, which came out of discussions with potential farm-in partners.
NZOG, or its subsidiaries, have a share in production from New Zealand’s Kupe and Maari field and also Sampang in Indonesia.
NZOG’s exploration interests are three offshore West Australian prospects, four onshore and one offshore prospect in Indonesia, plus Clipper, which includes the Barque prospect, and Toroa, the latter south of Dunedin in the Great South Basin.
NZOG revenue for the quarter to December was $7.5million, with cash reserves as at September 2017 falling from $122million to $83.1million.
Earlier this week the Overseas Investment Office granted consent to Monaco-based Ofer Global to purchase a 67.5% controlling stake in NZOG, for $84million, which included the 17% stake of Australian company Zeta whose takeover offer was unsuccessful.
Among the reasons for granting the consent, the Overseas Investment Office said Ofer was committed to carrying out and funding exploration and production activities.
NZOG and Beach Energy are 50:50 partners in the Clipper permit of Oamaru, and reiterated in the quarterly report discussions were ongoing with "potential farm-in partners"; which is what they have been saying for about two years.
Despite having the multibillion-dollar Ofer Global as its controlling shareholder, Ofer is not underpinning the cost of drilling exploration, and outside partners will be sought.
The recent estimates of drilling one test hole off Oamaru, at depths below sea level of 2500m and 3000m, in water depths of 800m, have been about $US80million to $US100million ($NZ116million to $NZ146million).
NZOG has estimated the Barque prospect, within the Clipper permit, could contain 11trillion feet of gas and 1.5million barrels oil or gas condensate.
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Thank you Cull and the DCC for not welcoming such companies to use Dunedin as a hub for operations, because of this you have stopped the much needed employment for Dunedin's people, and future generations, stopped Dunedin progressing. Such narrow minded thinking sure there is a balance between being green and looking after the people the city you are responsible. All I can do is say shame on you and thank you for helping destroy the city I was born in. still love but have moved away from again.