Consortium to drill in Tasman Bay

Press, Volume CXV, Issue 34021, 10 December 1975, Page 28

Consortium to drill in Tasman Bay

The Aquitaine/Murphy/Odeco Consortium, and the New Zealand Government have signed an agreement to drill two exploratory ofl-shore wells in Tasman Bay, near Nelson, the stock exchange says.

The consortium will pay 60 per cent of the exploration costs, and the New Zealand Government will pay the balance.

If oil is discovered the Government will be entitled to a 51 per cent production

interest, and would contribute the same percentage of I the cost of development for ! production. The wells will be drilled ■by the Glomar Tasman offI shore drilling rig, com‘mencing mid-January 1976. The new wells, named Surville No 1, and Fresnes No 1, will be in water depths of 165 ft and 265 ft respectively. Existing royalty arrangements entitling Tasman Petroleum Ltd, to a 10 per cent well-head royalty until costs are recovered, then reducing to 9 per cent will continue. Beach Petroleum has a 50 per cent interest in Tasman Petroleum, Ltd. The recent issue bj’ Beach iof 10m ordinary shares of 'soc each payable 15c a share lon application, and credited as paid up as regards a furIther 35c a share, is closed. All shares were applied for and allotted. The issue provided about I $ 1.5 m of new funds.