The Maari stake was previously held through Delta Oilfield Developments, which was operated through the Carpenter Pacific and Westgold vehicles.

The Maari field, situated in 100 metres water depth, approximately 80km from the Taranaki coast, is the largest undeveloped offshore oil field in New Zealand.

Cue paid $6.2 million, which it said represents A$2.48 per barrel for the Cue’s share - 2.5 million barrels of P50 recoverable oil volumes. The effective date of the sale is 1 December 2004, but is conditional on government, shareholder and joint venture approval and a capital raising by Cue.

Knox described the acquisition as a top deal.

“We’ve been able to buy the interest for around $2 per barrel in the ground. That is less that we could have drilled it for,” he said.