The OMV-led joint venture to explore for oil and gas in the Great South Basin has had its permits extended by Government agency Crown Minerals for a year before it must decide whether to commit to test drilling, or drop the permits.
The extension mirrors that of rival Exxon Mobil, which last October received a 12-month extension to its five-year Great South Basin exploration permit, saying at the time it was looking for a buy-in joint venture partner to undertake test drilling.
As well, analysis of existing seismic data recorded by OMV has stimulated a finer search pattern for areas of interest.
In July 2007, Exxon (90%) and Todd Exploration (10%) made up one consortium, with the other headed by Austrian-based OMV New Zealand Ltd, which announced they had gained separate five-year permits for nine of a total of 40 Great South Basin blocks, touting up to $1.2 billion in potential spending on exploration during the five-year period between the pair.
Yesterday, OMV announced its work programme deadline, which requires a decision on whether to drill exploration wells within three years, had been extended to July 10, 2011.
"If the decision is made to drill, then drilling would occur within the following year (2012).
A total of five wells would be drilled should the decision be made to go ahead in all three permits," OMV said.
During the 2007-08 summer, it acquired data from the largest seismic survey undertaken in New Zealand, of almost 16,000km of 2D studies spread over 48,000sq km and "interpretation was well advanced".
"With this new work, areas have been highlighted which justify a denser seismic grid pattern for further advanced analysis, which will further improve forward planning," OMV said.
The findings have prompted a second survey, which started on January 10 to glean an additional 2600km of 2D data.
Singapore-based Reflect Geophysical will use the 73m vessel Bergen Resolution, assisted by the New Zealand-based chase vessel Ocean Pioneer.
Bergen Resolution is to visit Dunedin on January 20 for refuelling.
OMV venture partners
OMV New Zealand Ltd (operator) 36%
PTTEP New Zealand Ltd 36%
Mitsui E&P Australia Pty Ltd 28%
