AWE increases shareholding in NZ oil project
PERTH (miningweekly.com) – ASX-listed oil and gas developer AWE Limited was set to increase its stake in the Tui area oil project, offshore New Zealand, after joint venture (JV) partner Mitsui decided to divest of its 35% interest.
AWE, which is the operator of the project, would be allowed to acquire a further 15% shareholding in the project, taking its interest to 57.5%. The 15% interest would be sold for A$6.49-million.
The other JV partners, New Zealand Oil & Gas and ASX-listed Pan Pacific Petroleum, would take up the remaining shareholding, with New Zealand Oil & Gas’ interest reaching 27.5% and Pan Pacific Petroleum’s reaching 15%, post the transaction.
As part of the purchase agreement, Mitsui’s interest in the Oi exploration well would also be assigned to AWE and New Zealand Oil & Gas.
AWE MD Bruce Clement said on Thursday that the decision to secure a further 15% shareholding in the production asset was a straightforward one.
“Mitsui’s decision to divest from the Tui project presents a great opportunity to other JV partners, and we quickly reached a decision to move ahead with a purchase agreement.”
Clement said that the project had performed well over the years, and although it was considered relatively mature, there was significant potential for development and exploration wells to add further production upside and to extend the project life.
“Both these wells are planned to be drilled over the December/January period, and we will have a better understanding of the potential upside in early 2014,” he said.
Tui oil is produced from four wells linked to a floating production, storage and offloading vessel. The project currently produces at a rate of some 4 500 bbl/d.
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