Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Aorere Kotuku oil interests part of Mosman London listing

27 January 2014

Aorere Kotuku oil interests part of Mosman London listing

Aorere Resources will hold an 11.4% shareholding in a London AIM-listed company, Mosman Oil and Gas, if Mosman is able to raise £2.5 million in capital.

The capital raising is currently underway and listing will occur once it is raised.

This follows the sale of the West Coast Kotuku oil seeps petroleum exploration permit to Mosman Oil and Gas Ltd late last year. The deal gives Aorere the shareholding and a royalty for 2% of net sales revenue from the permit in the event of successful development.

Aorere chairman Dene Biddlecombe said the board was excited by the potential for the permit and investment in Mosman, which also holds 25% of a West Australian onshore oil and gas permit application.
The Mosman AIM listing is well advanced and its listing is expected in the second half of February.

Mr Biddlecombe said a competent person’s report by Moyes and Co commissioned for the listing had two interesting findings:

• The permit has hydrocarbon potential in deeper structural and stratigraphic plays to the west and north of the Kotuku seeps where the hydrocarbon kitchens are mapped.

• The permit has the necessary ingredients to suggest accumulations of oil could be present, particularly at deeper levels. The project area is dominated by the Kotuku anticline and 22 leads and prospects have been mapped over the feature. The shallow nature of many of the structures mapped is favourable for cost effective drilling.

Page 28 of the report also sets out the “prospective resources” at the permit. These suggest in terms of unrisked recoverable oil within four reservoirs at the permit there is a:
• 90% probability of 4.8 MSTB (million stock tank barrels)
• 50% probability of 15.6 MSTB.
• 10% probability of 59.2 MSTB.

These are estimates only and should be considered in the full context of the competent person’s report. In particular the above must be considered in the context of the definition of “prospective resources” in the report which says:

"Prospective resources are estimated volumes associated with undiscovered accumulations. These represent quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from oil and gas deposits identified on the basis of indirect evidence but which have not yet been drilled. This class represents a higher risk than contingent resources since the risk of discovery is also added. For prospective resources to become classified as contingent resources, hydrocarbons must be discovered, the accumulations must be further evaluated and an estimate of quantities that would be recoverable under appropriate development projects prepared."

Perth-based Mosman plans to drill two onshore wells in the coming months at the Kotuku prospect on the West Coast.

“This will be a significant investment by the permit holders in the West Coast economy,” according to Mr Biddlecombe. “We remain hopeful of a modest oil strike which may be the start of a new oil and gas industry on the West Coast. As well as being great news for our shareholders, it would provide a fantastic boost to the local economy.”

Mosman, backed by European, Australian and Asian investors, brings extensive international experience in the oil and gas exploration sector.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news