New Zealand Oil & Gas (NZOG) has signed agreements with AGL Energy and Tag Oil Offshore to increase its stake in the Taranaki permit, offshore New Zealand.

The company will purchase a 17.14% stake in the permit, which lies to the east of NZOG’s Kupe gas and oil field and is on trend with the onshore Rimu and Kauri fields.

NZOG will pay AGL $3m and will be assigned AGL’s 42.86% equity in the permit, taking NZOG’s total stake to 60%. TAG will retain the other 40%.

An application has been submitted to the New Zealand regulator, NZ Petroleum & Minerals, to extend the permit drilling commitment to 18 September 2012, with a well to be drilled by 18 May 2014.

It had also started a search for a farm-in partner to join the joint venture in a drilling programme planned for late 2013 or early 2014.

NZOG said that figures previously released by the joint venture had estimated the permit to hold mean recoverable reserves at 45 million barrels of oil in an oil case, or 200 billion cubic feet of gas and 7.5 million barrels of condensate in a gas case.

Image: NZOG is set to increase its stake in the offshore Taranaki permit to 60%: Photo courtesy of: NZOG.