Beaver In Farm-Out Agreement

Press, Volume CIX, Issue 32296, 14 May 1970, Page 23

Beaver In Farm-Out Agreement

(N.Z. Press Association) WELLINGTON, May 13. Negotiations with BP-Shell-Aquitaine and Todd Petroleum Development, Ltd, Wellington, have been completed, subject to signature by all parties, for a farm-out agreement allowing Beaver Exploration Australia N.L. to earn a 50 per cent interest in the New Zealand company’s east coast basin on-shore petroleum exploration area, by conducting surveys there over the next two years, the directors of Beaver said in a statement today. The 72 separate petroleum prospecting licences making UP the farm-out are held by BP-Shell-Aquitaine and Todd Petroleum Development, Ltd. The area, which extends along the east coast for 325 miles north-eastward from Wellington, includes a threemile wide off-shore strip, covers about 8 million acres and is the largest single block! of petroleum prospecting! licences on land in New Zealand.

Beaver, as operator of the farm-out. will conduct seismic and drilling operations, and the company anticipates commencing a 200 line mile seismic survey before September of this year, with at least two wells to be drilled before May, 1971. An additional 100 miles of seismic survey and a further three wells are to be com-

pleted by mid-April, 1972, under the terms of the agreement

A number of undrilled anticlinal structures are already know in the area, and others may be found after the seismic surveys.

A thick unit of porous reservoir rock crops out and is predicted to be present in the subsurface, enclosed within a section of shale which could provide a petroleum source; oil seeps occur within the farm-out area. The company is optimistic as to the petroleum possibilities of this large basin, but the directors say the usual exploration risks are inherent in the project. The agreement is subject to approval by the appropriate—Government authorities.