Industry sources say integrated energy company Origin, operator of the Kupe gas project, is rated the frontrunner to acquire Swift’s New Zealand production and exploration assets, which are all in onshore Taranaki.
Swift’s holds the Rimu-Kauri and the Tariki, Ahuroa, Waihapa and Ngaere (Tawn) producing oil and gas fields. According to Crown Minerals, the Rimu-Kauri and the Tawn properties together hold less than 15 million barrels of oil. The company also maintains and operates two natural gas processing plants, an oil processing plant, and oil and natural gas pipelines.
Its exploration acreage includes a 50% stake in the offshore licence PEP 38495, which contains the promising Kaheru prospect, and the recently-granted southward extension PEP 381201.
Swift holds operatorship and 50% stakes in both of these assets, in partnership with government-owned Mighty River Power.
It is understood that exploration rights in Swift’s onshore north Taranaki block, PEP 38742, which it operated with an 80% stake, have lapsed.
Swift drilled several exploration wells in and around these permits from late 2005 to late last year but none struck commercial hydrocarbons. It did have some success, however, with development or infill drilling at Rimu-Kauri. The company is not undertaking any exploration this year.
It is understood Swift is closing bids for its New Zealand assets on November 16.
Swift investment relations director Scott Espenshade said he expected the strategic review to be completed by year-end, but declined to comment on possible contenders for the company’s New Zealand assets.
Origin executives visited Swift’s New Zealand headquarters in Wellington and last week toured its Taranaki facilities in preparation for helping their company make its final offer.
Origin has been aggressively expanding its New Zealand oil and gas interests since taking over as operator of the Kupe project in early 2004 and now has several exploration blocks in the offshore Canterbury, Taranaki and Northland Basins.
The company also has a controlling (51.4%) interest in New Zealand’s largest listed integrated energy company Contact Energy.
But it has no onshore acreage since relinquishing, in association with operator New Zealand Oil & Gas, licence PEP38729 last month.
Sydney-based Great Artesian Oil & Gas is rumoured to be second in the race to acquire Swift’s New Zealand assets, which would be the company’s first assets outside Australia.
Vermilion holds the Wandoo oil field in northwestern Australia but has no New Zealand interests.
Houston-based Swift Energy announced last May that it was reviewing selling or restructuring its New Zealand operations, primarily because of continued frustration over faltering oil and gas flows.
The company said then that options included selling or merging some or all of its New Zealand assets, as well as entering more joint venture partnerships or "reshaping" its long-term operational strategy for New Zealand.
But it is now believed to have decided to quit New Zealand altogether.
