Exploration buy-up bags millions of acres and barrels
A single company now owns exploration rights to 2.04 million acres of New Zealand’s East Coast Basin.
New Zealand Energy Corp doubled its stake in the area when it was awarded a 100 per cent interest in the East Cape permit.
The permit covers about 1.05 million onshore acres in the Raukumara region of the basin, on the northeast tip of New Zealand's North Island.
The oil and gas company, considered a junior in its field, has access to a potential yield of over 604.5 million barrels of oil – based on conservative estimates.
The Basin’s wealth is in the form of both conventional Miocene sands and unconventional oil shales, according to the company. There are more than 300 onshore oil or natural gas seeps in the East Coast Basin, many of which have been sourced to two oil shale packages known as the Waipawa and Whangai shale formations.
The company’s work program will include assessment of piles of seismic data, and plans to sink an exploration well by the second quarter of 2016.
“With the backdrop of heightened interest in oil shales worldwide, NZEC now controls the largest exploration portfolio in New Zealand's East Coast Basin, with more than 2 million acres from which to explore and unlock the potential of these highly prospective oil shale packages,” said CEO John Proust in the statement.
“NZEC's technical work over the last three years has given us a much greater understanding of the East Coast Basin. We look forward to advancing our oil shale exploration strategy in 2014.”
New Zealand Energy is forecasting a 2014 exit production rate of 2,300 barrels of oil equivalent, per day.