This move comes after only one well, the shallow unsuccessful Patea-1 that was drilled in mid-2003 into the Patea prospect that the two companies believed straddled three licences PEP 38737, 760 and 719.
Although Shell NZ is still involved in the development of the possible NZ$1 billion Pohokura project, it is exiting all exploration acreage.
The relinquishing of PEP 38737 leaves only the Western Platform licences PEP 38481 and 38482, which Shell NZ is again farming out amid rumours that last year’s farminee, Electro Silica Plc, has not fulfilled its work program obligations.
Indigopool’s latest Global Opportunities email newsletter says Shell NZ is offering to farm-out up to two-thirds of its 60% stake in the permits that contain prospects with potential for more than 2.0 tcf of unrisked gas in place (GIIP) and a portfolio of follow-up leads.
While Shell exits NZ exploration, US independent Discovery Geo is grabbing more acreage, winning what is believed to be its first offshore East Coast licence PEP 38343, a 5992.58 sqkm permit.
Discovery Geo, headed by flamboyant CEO Burnett Martin, is undeterred by its lack of success with several onshore Taranaki wells it has drilled in recent years. The company is expanding its offshore exploration efforts off Taranaki and now the other side of the North Island.
