New Zealand Energy expands Taranaki footprint with new onshore permit

New Zealand Energy Corp. (CVE:NZ)(OTCQX:NZERF) has been awarded a new exploration permit as part of the annual New Zealand block offer, expanding the oil and gas company's onshore exploration land package in the Taranaki Basin by more than 66 square kilometres.

The Vancouver-based energy company said Tuesday it lodged a bid for Block TAR7 (PEP 54867) in a 60/40 joint venture with a subsidiary of Wellington-based explorer and producer New Zealand Oil & Gas (NZOG), bringing together two companies with "extensive experience" in the Taranaki Basin and the financial resources to advance the property.

Indeed, New Zealand Energy recently made its fifth oil discovery in the Taranaki Basin of New Zealand's North Island, and has transitioned from an explorer to an oil and gas producer, now having operations ongoing at seven wells, on three separate sites.

"The addition of PEP 54867 to our portfolio gives NZEC strategic control over a promising, unexplored block of land and strengthens our long-term growth plans," said CEO John Proust.

"NZOG brings decades of New Zealand technical expertise to the partnership and shares NZEC's commitment to responsible resource development."

The new block lies within a large underexplored part of southwest Taranaki, the junior oil and gas producer said, right next to the large Kapuni gas-condensate field, and contiguous with the south end of the company's Eltham permit.

With the Kapuni field to the east and a number of large oil and gas fields offshore to the west, the company noted there is a "high level of assurance" that petroleum is migrating through the block, yet there has been little exploration in the area so far.

The joint venture also has technical information on the block from exploration wells in adjoining areas, including the Kapuni wells to the east and the Te Kiri wells to the northwest, as well as 90 kilometres of 2D seismic collected on the property.

The Kapuni 3D seismic survey also extends 1,750 metres onto the permit from the east, giving control on the eastern edge of the property, New Zealand Energy said.

It added that the block also has "good access" to existing infrastructure, including oil and gas gathering lines and a production station.

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