These assets include the onshore Taranaki fields Tariki, Ahuroa, Waihapa and Ngaere (Tawn); the Waihapa production station; the more southern Rimu, Kauri and Manutahi fields; the Rimu production station; separate oil and gas pipelines from Waihapa to New Plymouth; offshore exploration permits; and an inventory of equipment and supplies.
Origin had also acquired Swift's 50% interests in the offshore licence PEP 38495, which contains the promising Kaheru prospect, and the recently granted southward extension PEP 381201 immediately offshore from the Rimu production facility and adjacent to the Kupe development.
"The purchase will bring immediate production benefits for Origin and also adds exciting development and exploration opportunities both onshore and off the Taranaki coast," Origin managing director Grant King said.
He added that Origin had been building its position in New Zealand for a number of years and was now the largest holder of exploration acreage in the country, with licences off Northland, Taranaki and Canterbury, as well as being operator of the $NZ1.1 billion ($A0.9 billion) Kupe gas-condensate project off south Taranaki.
King also said the Swift purchases would deliver greater operational synergies with Kupe, increased exploration opportunities and create valuable gas storage facilities for Contact.
Contact, under a separate arrangement, will contribute about $NZ54 million to the total purchase price for the right to own and develop the Ahuroa field as New Zealand's first underground gas storage facility and to purchase the remaining gas and LPG reserves in the Ahuroa reservoir.
Contact chief executive David Baldwin said the Ahuroa acquisition provided Contact with a valuable development option that the company expected to have operating by 2010.
"Gas storage will be a critical component of New Zealand's energy future. The ability to purchase gas during off-peak periods, store it underground and release when it is most needed will provide valuable supply flexibility for Contact and enable the company to use its gas fired power stations in the most economic and efficient fashion."
Swift's 56 New Zealand staff will join the 20 workers on the Origin New Zealand payroll. Origin expects to have more than 130 staff once the Kupe project is finished in mid-2009.
The Taranaki Daily News quoted Origin exploration and production manager Paul Zealand as saying Origin intends using its Australian technical expertise to help extend the lives of the Rimu-Kauri and Tawn fields, using the skills and processes associated with their Queensland coal seam methane developments to develop shallow oil plays in Taranaki.
