Canada-based exploration and production company East West Petroleum has been awarded a petroleum exploration permit 55770 (PEP 55770) stake, which covers around 106,157 acres in the East Coast basin in New Zealand.
New Zealand Petroleum and Minerals has awarded 40% interest to the company, while its joint venture partner and operator TAG Oil was awarded a 60% interest in the petroleum exploration permit, as part of the 2013 New Zealand block offer.
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The company intends to fund the initial 12-month work programme, which includes reprocessing of available seismic data.
To maintain its 40% interest in the permit, the company plans to fund the acquisition of 60km of new 2D seismic and one unconventional well drilled to around 2,500m by April 2017.
East West Petroleum president and CEO David Sidoo said that the expansion into the East Coast basin with a proven operator like TAG will provide the company with high-impact exploration potential in New Zealand.
"We are very happy and excited for TAG and East West to be awarded this new acreage in the 2013 New Zealand Block Offer," Sidoo added.
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By GlobalDataThe company noted that the East Coast basin is a lightly explored and Cretaceous-Cenozoic age fore-arc basin.
The basin is expected to include numerous oil and gas seeps, which have potential for significant discoveries of both conventional and unconventional hydrocarbons.
The initial studies have indicated that the source rocks in the basin can be comparable to proven unconventional plays, such as the Bakken in North America.
TAG has informed the company that the Cheal-E4 well situated in the Cheal North permit (PEP 54877) has reached a total depth of 2,235m and operations were completed on time and on budget.
The company holds stake in three exploration permits in New Zealand near to existing commercial production in the Taranaki basin with a nine well drilling campaign, operated by TAG Oil.
Image: PEP 55770 in East Coast basin. Photo: Courtesy of East West Petroleum.
