NZOG aims to test Kaupokonui

New Zealand Oil & Gas (NZOG) seeks a rig to drill the Kaupokonui oil prospect in the PEP 51311 offshore New Zealand.

Offshore staff

WELLINGTON, New Zealand -- New Zealand Oil & Gas (NZOG) seeks a rig to drill the Kaupokonui oil prospect in the PEP 51311 offshore New Zealand. If one is located, drilling could start late this year.

Kaupokonui comprises vertically-stacked potential reservoir sands – NZOG estimates unrisked recoverable resources at over 200 MMbbl. The company has identified further prospects within the permit.

The company has also has entered into a farm-out agreement for this permit with Australian company Peak Oil & Gas (currently merging with Raisama Ltd). Peak will secure a 10% interest by contributing 20% of the cost of the Kaupokonui-1 well. NZOG says it will seek a further farm-out to limit its exposure to the well cost.

NZOH has a 15% non-operated in the adjoining PML 38146 permit containing the producing Kupe Central field area and other prospects and leads. The joint venture is performing geological and geophysical studies that could lead to wells on one or more prospects. This would be staged to coincide with scheduled second stage development drilling in 2012/13.

01/31/2011

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