New Zealand Oil & Gas has increased its stake in the Mereenie field in Australia’s Amadeus Basin by acquiring an additional 25% equity interest.
The deal includes an upfront payment of A$42.5m ($27.53m), with potential contingent payments of A$9m over the next two years, subject to certain conditions.
Go deeper with GlobalData
New Zealand Oil & Gas said the acquisition will increase its 2P reserves by 41% to 23mboe as of 1 July 2023.
The company’s total reserves and production from the Mereenie field will effectively double because of this deal.
Macquarie Mereenie, the seller, has agreed to offload its entire 50% interest in the field. Horizon Oil is acquiring the remaining 25%.
New Zealand Oil & Gas initially entered the Mereenie field through a transaction with Central Petroleum in 2021.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUpon completion of the latest acquisition, New Zealand Oil & Gas will hold a 42.5% interest, Horizon Oil 25%, Central Petroleum (the operator) 25% and Cue Energy Resources 7.5%.
The Mereenie gas field, which reached peak production in 2007, has successfully recovered 88.99% of its total recoverable reserves.
According to GlobalData, projections based on current economic assumptions suggest that production will persist until the field’s economic limit in 2030.
New Zealand Oil & Gas chief executive Andrew Jefferies said: “The Mereenie asset has been a consistent performer with development upside. Gas prices in Australia’s East Coast markets are strong because natural gas is needed for the low-carbon energy transition. We have secured gas sales agreements directly into that market.
“In addition to reducing emissions in the energy system, natural gas from Mereenie powers diverse processes: mining needed for EV [electric vehicle] and wind turbine manufacture; electrical plant to back-up variable wind and solar; cooking our Australia day prawns. We previously announced a memorandum of understanding to investigate helium recovery at the Mereenie gas plant.”
The deal is subject to customary closing conditions such as regulatory approvals.
In December 2023, New Zealand Oil & Gas secured a gas supply deal with Incitec Pivot Fertilisers to supply a total of 1.74 petajoules of gas from its Palm Valley joint venturers.
