New Zealand Oil & Gas has accepted Tamarind''s offer for its 27.5 per cent
interest in the Tui area oil fields off Taranaki, New Zealand.
Tamarind, based in Kuala Lumpur, Malaysia, will pay New Zealand Oil & Gas
USD$750,000 in exchange for all shares in its Tui holding company, Stewart
Petroleum. Tamarind in December announced an agreement to purchase the 57.5
per cent interest of the operator, AWE.
Stewart Petroleum''s assets and liabilities include a 27.5 per cent interest
in the Tui field, and inventory of USD$4.7 million of oil. Working capital of
$6 million will be transferred to Tamarind. Tamarind will also assume all
field retirement obligations.
The effective date of the transaction is 1 January 2017.
Chief executive Andrew Jefferies said, "The sale of the Tui interest allows
New Zealand Oil & Gas to realise the present value of remaining Tui reserves
while reducing exposure associated with the uncertain end of field cessation
costs and timing."
The date when production ends will depend on expected oil prices, lease costs
and field production rates.
"New Zealand Oil & Gas analysed the Tamarind offer and finds it compelling
based on Tamarind''s specialist end-of-field-life capability, including
optimising late stage production and abandonment operations.
"Since the Pateke-4H well went into production in April 2015 Tui production
has been in line with our expectations and our valuation of this transaction
secures that production profile in today''s dollars, while it also means we
minimise financial risks associated with the abandonment of the facility. We
are pleased that Tamarind shares our value perspective," Mr Jefferies said.
Ian Angell, MD of Tamarind, said, "This acquisition is a logical next step in
our investment in New Zealand and in the Tui Area. By acquiring this
additional stake, we will be able to move quickly and in a focused manner to
bring our field life extension plan to fruition. While there is much
discussion about field decommissioning, Tamarind is confident with the
strength of the Tui operating team in New Plymouth, this area will have many
years of remaining production."
"While there is much discussion in New Zealand and the region regarding late
life field management, Tamarind is confident of our ability to bring
innovation in terms of technologies and methodologies for field retirement.
This will allow the numerous stakeholders in New Zealand to have a much
greater confidence that such fields can be managed progressively and at much
lower costs and risk to all concerned," Mr Angell added.
"New Zealand Oil & Gas is entering a new stage in its life. Having sold our
legacy producing assets we are looking for opportunities to deploy our cash
by acquiring new producing assets with a preference for gas in markets we
understand," Andrew Jefferies said.
New Zealand Oil & Gas contact
John Pagani
External Relations Manager
+64 21 570 872 Mobile
john.pagani@nzog.com
Tamarind contact
Ian Angell
Managing Director
Tamarind Classic Resources Limited
+60321635588 Office
+60123047105 Mobile
ian.angell@tamarindenergy.com
End CA:00296738 For:NZO Type:JOINTV Time:2017-02-14 14:51:42