Oil prospect favoured

Press, 25 August 1981, Page 6

Oil prospect favoured

PA Wellington The London sharebrokers, Grieveson Grant, say that New Zealand Oil and Gas’s prospective area 113 off the Taranaki coast is large by world standards and could have recoverable reserves of 186,900 million cubic metres of gas and 189 million barrels of condensate.

The brokers have given a “buy” recommendation .on the stock. They say that in terms of oil equivalent, these estimates are equal to 650 million barrels.

They say, “If a field half this size were located in 113, the net worth to N.Z.O.G. would be more than SUS 9 a

share. If only 10 per cent of the size of Maui, the reserves would represent SUSI. 92 a share.”

Grieveson Grant describe N.Z.O.G.’s other principal prospect 110, further out to sea, as “very speculative.” They say that 113 has the Cape Egmont fault extending through it “which is believed to have provided the channel for hydrocarbon - migration from the course rocks to the Maid reservoir.”

They say that theoretically several major structures could be contained in block 113 because it is about seven times larger than a North Sea exploration licence. “The five-year licence is

highly prospective geologically and is in a favourable operating environment,” they say. Water depths are shallow, part of the block is onshore, and maximum water depths are some 420 ft.”

The five-page study of N.Z.O.G.’s prospects says that oil and gas expertise is provided by N.Z.O.G.’s directors who are on the boards of listed Australian exploration companies: Pan Pacific Petroleum and Otter Exploration. The brokers say, “The range of petroleum-industry contacts should prove invaluable if NJZ.O.G. seeks ventures in Australia.”