NZOG outlines progress

Press, 10 December 1981, Page 23

NZOG outlines progress

he directors of New Zealand Oil .and Gas, Ltd, outlined progress to date to shareholders at the statutory meeting held in Wellington.' The joint venture agreement with Petrocorp over licence 38113 in the Taranaki Basin, was signed on November 30. The seismic surveys over that area will now be postponed from the previously envisaged early January, until early February, next year. This is because of maintenance to the survey vessel which will delay its arrival into New Zealand waters. The extent of this survey remains at 750 km. In the case of the other Taranaki licence, PPL 38110, NZOG has been unable so far to secure the data tapes of an earlier seismic surveycarried out some years back by El Paso Natural Gas. of the United States; as these tapes are needed to fully plan the seismic survey in 38110, NZOG has decided to apply to the Ministry of Energy for a reduction in the

extent of this season's seismic survey, with an appropriate increase in the second vear programme within 38110.

The company has also agreed to acquire a 10 per cent interest in an application for an onshore prospecting licence in the Westland Basin in the northwest of the South Island. Petrocorp holds a 70 per cent interest in this application. New Zealand Oil and Gas has also applied for a contiguous Westland Basin licence, in which Petrocorp is also expected to participate. If granted, these licences will be the subject of helicopter-supported seismic surveys in mid-to-late 1982.

Negotiations are in progress for a consortium, including NZOG, to import a drilling vessel into New Zealand waters early in 1982. New Zealand Oil and Gas will underwrite part of the cost of operation of the vessel, for the minimum required 16 months period, thus

assuring the company of access to the vessel' for its anticipated Taranaki drilling. The public issue of 40 million 50c shares at par was closed on September 7. The subsequently announced under-subscription has since been taken up in full by the underwriters to the issue. Consequently, and as can be seen from the statutory report, the full $2O million cash was raised as envisaged. Since then, Stewart Petroleum Company, Ltd. has. become a wholly-owned subsidiary, and all other shares and share options referred to in the prospectus have been issued.

"The directors were most encouraged that more than 8000 New Zealand residents took up shares in the issue, and look forward to a growing appreciation from the New Zealand public of the potential of the company, about which the directors have no doubts whatso-ever,” they say.