NZ Oil Search: Horizon Oil Expands Its NZ Interests
October 28th, 2009
Following the success of recent drilling round the Maari field, Sydney-based Horizon Oil which has a 10% stake in Maari has decided to execute a farm-in agreement with Todd Exploration for a 30% stake in an exploration permit which lies immediately adjacent to and south of the Maari and Manaia permits. The permit covers an area of 2,638sq km. Informing the Sydney stock exchange of the move, Horizon said the good results obtained from the M2A sandstone, Moki and Mangahewa Formations during the recently completed development drilling campaign “augur well for the prospects of PEP51313. The permit contains numerous leads and prospects in several play types and is interpreted to include the migration path of oil which may have overflowed the Maari and Manaia structures.”
Horizon says the acquisition presents “a clear opportunity” to build a significant acreage position around the producing Maari field. The company did not disclose what it had paid for the farm-in but says it will earn its 30% interest by reimbursing Todd “for certain prior costs, and funding part of Todd’s share of seismic costs.” The permit work programme involves seismic re-processing and the acquisition of new 2D and 3D seismic data in the first two years. The joint venture has the option to drill exploration wells in the third and fifth years of the permit. Other partners in the joint venture are Todd Exploration with 50%, the operator, and Cue Taranaki Pty with 20%.
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