Australia-based AWE Limited announced Friday that it has completed the purchase of an additional 15 percent interest in the Tui Area Oil Project and an additional 6.25 percent in the Oi exploration well, located offshore New Zealand in Petroleum Mining Permit (PMP) 38158, from Mitsui E&P Australia Pty Limited. AWE is the Operator of the PMP 38158 joint venture.
Further to the company’s Australian Securities Exchange (ASX) release Oct. 3, AWE purchased the additional interest in Tui and Oi for a consideration of $6.4 million. The transfer of interest has been approved by the New Zealand Minister of Energy and Resources and the effective date of the transaction is Oct. 1.
Following completion of the purchase, AWE now holds a 57.5 percent interest in Tui area oil project and a 31.25 percent interest in the Oi exploration well. AWE has the option to increase its equity in Oi up to 57.5 percent in any development through a buy-back of equity from Pan Pacific Petroleum.
Managing Director of AWE, Bruce Clement, said that the purchase of an additional interest in Tui and Oi was a good example of how the company is maximizing near-field opportunities and delivering on its strategy.
“The Tui area oil project has been a fantastic performer for AWE over the years and we believe the project holds significant remaining value. As the Operator, we are very comfortable increasing our interest to 57.5 percent and we are looking forward to the drilling program that is scheduled to commence in the early part of 2014.
“We plan to drill both the Pateke-4H development well and the Oi exploration well in early 2014. If successful, these opportunities will add further production upside and add substantial value to the Tui project,” Clement said.
The Joint Venture partners in PMP 38158 are:
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