AWE farms out interest in PEP 55768 and upcoming Kohatukai-1 exploration well

AWE has entered into a farm-out agreement for New Zealand exploration permit PEP 55768 (AWE 51%, operator), onshore Taranaki basin, which includes the planned Kohatukai-1 well.

PEP55768 is located southeast of New Plymouth in a prolific gas producing region and contains a number of substantial prospects.

The current joint venture partners in PEP 55768 are AWE, with a 51% operating interest, and Mitsui E&P Australia (Mitsui), with a 49% interest.

The agreement will see the joint venture farm down a combined 50% working interest to New Zealand Oil & Gas and its majority shareholder, O G Oil & Gas (Singapore) Pte Ltd.

Each incoming company will acquire a 25% working interest in the permit. At completion of the farm-out, AWE will remain as operator with a 12.5% interest and Mitsui will retain a 37.5% interest.

The effective date is 1 March 2018 and completion is expected by the end of May 2018, subject to regulatory approvals.

The Kohatukai-1 well is scheduled to be drilled in the fourth quarter of CY 2018 to test dual objectives in the Eocene Matapo and Mangahewa sands targeting a prospect which is analogous to the nearby Pohokura Gas Field.

The current joint venture partners in PEP55768 are: AWE Limited (via subsidiaries) (operator) 51%; Mitsui E&P Australia 49%.

Source: Energy-pedia