Pan Pacific purchases additional Tui interest

Pan Pacific Petroleum has completed the purchase from Mitsui E&P Australia Pty Ltd of an additional 5% interest in the Tui area oil project offshore New Zealand in PMP 38158. PPP purchased the additional interest in Tui for a consideration of $143 million.

Offshore staff

SYDNEY, AustraliaPan Pacific Petroleum (PPP) has completed the purchase from Mitsui E&P Australia Pty Ltd of an additional 5% interest in the Tui area oil project offshore New Zealand in PMP 38158. PPP purchased the additional interest in Tui for a consideration of $143 million. The transfer of interest was approved by the New Zealand Minister of Energy and Resources.

Joint-venture partners inPMP 38158 are PPP, 15.0%, operator AWE Ltd., via subsidiaries, 57.5%; and New Zealand Oil & Gas, via a subsidiary, 27.5%.

With this acquisition, PPP has secured an additional stake in Tui production and has increased its exposure to the planned Pateke-4H appraisal/development well. PPP elected not to increase its existing 50% participation in the Oi exploration well that will be drilled following Pateke-4H; as part of the purchase agreement Mitsui’s interest in Oi has been assigned to subsidiaries of AWE Ltd. and New Zealand Oil & Gas.

PPP’s 50% participating interest in the Oi exploration well is subject to the sole risk provisions of the Tui joint-venture operating agreement. These provide an option for restoration of PEP38158 equities subject to reimbursement of pro-rata costs and the payment of a buy-back premium to PPP by the buy-back parties.

12/06/2013

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