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

 


NZ Oil & Gas 'cautiously optimistic' on Pateke expansion

NZ Oil & Gas 'cautiously optimistic' on Pateke expansion

By Suze Metherell

April 30 (BusinessDesk) – New Zealand Oil & Gas is ramping up spending in exploration and evaluation as it looks to find replacements for its Kupe and Tui oil and gas fields.

The Wellington-based company spent $25 million on exploration and evaluation in the three months ended March 31, according to its quarterly cash flow report. Both its Tui oil field and Kupe oil and gas fields are in decline as the company looks for alternative sites.

The Pateke exploration well, which falls in the Tui permit zone, is thought to have 2.5 million barrels of oil, the company said. If Pateke production went ahead it would "bolster output rather than changing the end date" of the Tui field, said Andrew Knight chief executive.

"It has oil in it which appears to have the same characteristics as discoveries nearby elsewhere in the Tui permit and we are cautiously optimistic it will get to the point where we complete drilling (and) we will be able to develop it," Knight said.

NZOG has a 28 percent stake in the Tui field, with Australian-based operator AWE holding about 58 percent.

NZOG's share in Tui's oil production increased to 93,330 barrels in the quarter, from 43,622 barrels in the same period a year earlier, as the company took a greater stake in the field. Kupe's gas and oil production recovered in the quarter after a shutdown in operations in the comparable period.

Both Tui and Kupe recorded a drop in quarterly revenue for the company, reflecting the timing of shipment arrivals which have been reduced as the operations produce less, chief financial officer Andre Gaylard said.

Offshore exploration in the Canterbury Great South Basin continued. NZOG also holds exploration permits in Indonesia and Tunisia.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news