"We like to explore in places that have low political risk, stable fiscal regimes and proven hydrocarbon basins," Pogo (a Pennzoil subsidiary) investor relations director Clay Jeansonc told EnergyReview.Net from Houston.
"We have already looked at New Zealand and like the strong gas market, the existing infrastructure, and that the Taranaki Basin is a proven producing basin.
"We have had drilling successes in the Gulf of Mexico, Thailand and Hungary and we hope to continue that in New Zealand."
Pogo (short for Pennzoil Offshore Gas Operations) was the successful bidder for three of the 13 new onshore and offshore Taranaki permits awarded earlier this month, which Associate Energy Minister Harry Duynhoven said should mean over NZ$130 million of extra investment in Taranaki over the next five years.
Jeansonc said Pogo - a listed company with a market capitalisation of about US$3 billion - specialised in working in marine environments, and in water depths of up to 200m.
Pogo knew of fellow Houston-headquartered Swift Energy. "We are familiar with Swift and with their work in New Zealand, though our new ventures group did their own regional studies into prospectivity, infrastructure and the gas markets in New Zealand".
The exit of the majors from countries or regions they felt marginal opened up a lot of opportunities for small firms such as Pogo - "we moved into the gap in several areas and, while we might not find the elephants, we believe there are still sizable accumulations to be discovered," Jeansonc said.
Pogo's New Zealand permits covered about one million acres - compared with its 782,000 acres in Hungary and about 700,000 acres in Thailand - and Pogo expected to spend about US$7 million in the next two years conducting an extensive seismic program over its kiwi blocks.
The New Zealand permits Pogo was awarded were PEP 38488 and PEP 38489 off north Taranaki and the smaller PEP 38490 further around the coast. One was on-trend with the formerly giant but now fast depleting Maui field.
Continuing positive cashflows from Thailand - where Pogo is involved with ChevronTexaco - would fund its New Zealand exploration programs. It holds a 46.3% working interest in the Thai licence B8/32 and gross production from there is approximately 52,000 barrels of oil and 200 million cubic feet of gas per day.
