New Zealand Oil & Gas Ltd’s (NZX: NZO) southern prospects are still on the table, but actual test drilling by the explorer is being done elsewhere.
The company (NZOG) said in its June quarter report that it was looking at undertaking three explorations wells - one onshore in north Taranaki and two in Indonesia, while it is still looking for joint venture partners for its offshore Clipper prospect off Oamaru and Toroa, south of Dunedin.
NZOG has a 50% share in Clipper and has applied to take over 100% of Toroa, with the company looking for farm-in partners for both prospects.
“A natural alignment exists in the timetable for (exploration of) Toroa and Clipper,” the company said.
NZOG ended the quarter with a cash balance of $98.6 million.
Billion-dollar Monaco-based Ofer Global took a controlling 69.87% stake in NZOG for $84 million last December, with both companies later taking a 25% stake each in the north Taranaki onshore prospect Kohatukai.
“A well is expected to be drilled in the fourth quarter of this calendar year,” with a rig contract already finalised.
The prospect is close to existing infrastructure and local gas markets.
Revenue for the quarter was up on a year ago at $10.6 M; both administration and production costs were $2.2 M each and exploration costs were $1 M.
Two exploration wells in Indonesia were also expected to be drilled in the last quarter of the year, where NZOG has a 25% stake in one and its subsidiary, Cue Energy, has a 15% stake in the other.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.