The permit is located southeast of New Plymouth in a prolific gas producing region, and includes the planned Kohatukai-1 well.
The well is scheduled to be drilled in Q4 2018 to test the dual objectives in the Eocene Matapo and Mangahewa sands targeting a prospect that is analogous to the nearby Pohokura gas field.
The current joint venture partners in the permit are AWE (51 per cent and operator) and Mitsui E&P Australia (49 per cent).
The new farmout agreement will see the joint venture farm down a combined 50 per cent working interest to NZOG and its majority shareholder O.G. Oil & Gas Singapore, with each to acquire a 25 per cent stake.
At completion of the farmout, AWE will remain as operator with a 12.5 per cent interest, with Mitsui now controlling a 37.5 per cent interest.
The effective date is 1 March 2018 and completion is expected by the end of May 2018, subject to regulatory approvals.