Sydney-based Anzon told the Australian Stock Exchange this afternoon that it would obtain New Zealand private company Arrowhead Energy’s entire 15% stake in the PEP 38259 exploration permit by helping fund the drilling of the Cutter-1 wildcat well in October.
Earlier this year, Arrowhead acquired this and other New Zealand interests through its associations with Perth-based private company Claire Energy.
Tap New Zealand, a Tap Oil subsidiary, is operator of PEP 38259 with a 40% interest, while AWE owns 25% and Beach Petroleum 20%.
Anzon said the acquisition fitted its strategy of expanding and diversifying its exploration portfolio. It represents the company’s first move outside the Gippsland Basin.
PEP 38259, offshore Oamaru and Dunedin on the South Island’s east coast, covers about 6648 square kilometres.
The Galleon-1 well, drilled in the permit in 1985, encountered a 21m gas column that flowed up to 10 million cubic feet of gas per day, with associated condensate of 2240 barrels per day.
The Australian joint venture believes it has now matured two prospects – Cutter and Barque – for drilling.
Tap estimates the Cutter prospect has the potential to contain between 50 and 80 million barrels (MMbbl) of recoverable oil. Located in 75m of water, the exploration well is due to spud in October using the semi-submersible drilling vessel Ocean Patriot. The rig will be mobilised to the permit once drilling operations are complete at Nexus Energy’s Longtom-3 well in the Gippsland Basin.
Meanwhile, Tap says the much larger Barque prospect, located in 850m of water, could contain between 5 and 6 trillion cubic feet of gas with 500MMbbl of condensate.
