Denver-based Global, which names its prospects and leads after breeds of New Zealand sheep, has given away 23,000 square kilometres of the former 55,830sq.km licence PEP 38451.
"We have relinquished acreage to the west and northwest of the original permit where we did not see any prospects or leads," Global managing general partner Randall Thompson told PetroleumNews.net from Denver.
"That is not to say that such prospects or leads do not exist but we are definitely keeping our known New Zealand sheep, such as the Corriedale, Romney and Coopworth prospects," he added.
Thompson said part of the work program commitments for the licence included dropping 10% of the original acreage by April 2009 and another 15% six months later.
"So essentially we are doing that early - consolidating and concentrating on the best parts of the permit."
Thompson also said he was negotiating with various seismic companies, as well as other offshore licence holders, regarding bringing a vessel to New Zealand for a multi-party, multi-permit seismic acquisition program in a number of geological basins either late this year or early next.
Last month Hyundai Hysco, South Korea's third-largest steel producing company, farmed in to PEP 38451 earning a 30% stake by undertaking to pay a proportion of the cost of acquiring about 3100km of new 2D seismic as part of the first stage of the permit's work program obligations.
Last year a technical review by GNS Science of New Zealand's deepwater Outer Taranaki Basin revealed several significant structures that could each hold up a billion barrels or more of oil.
These included the Cretaceous-aged Romney, with an areal closure of 200sq.km that could be charged with 1.1-1.65 billion barrels of oil, plus 1.7-2.7 trillion cubic feet of gas; nearby Coopworth, with an areal closure of 130sq.km and potential charge of 350-540 million barrels of oil, plus 0.6-1.0Tcf of gas; and Corriedale, with a 64sq.km areal closure that could contain 180-280MMbbl of oil and negligible gas.
Thompson also said he had now taken a 10% personal stake in the permit. "I'm putting my own money where my mouth is, showing good faith in this project," he told PNN.
Thompson said Global was still looking to farm out another 30% or so to another major company.
He reiterated that given the large quantities of hydrocarbons likely to be in the permit, exporting liquefied natural gas to markets such as South Korea was possible if enough gas was found.
The PEP 328451 partners are operator Global Resource Holdings LLLP (60%), Hyundai Hysco (30%), and Randall C. Thompson LLC (10%).
