New Zealand Oil & Gas (NZOG) has agreed to purchase interests in three producing Northern Territory assets from Central Petroleum, with the remaining third party approvals being received.
All conditions precedent to the transaction have now been satisfied and the parties will move to complete the transaction on October 1, 2021 in accordance with the terms of the sale and purchase agreement.
NZOG chief executive officer Andrew Jefferies was pleased see the final conditions fall into place to seal the deal.
“A deal that delivers on the strategy our board announcement last year, gas into an excellent market, with development upside, in a place we understand, with partners of quality, and appropriately sized,” he said.
In July NZOG received the green light from the Australian Foreign Investment Review Board to go ahead with the acquisition of Central Petroleum’s assets in the Amadeus Basin.
In May the company agreed to purchase interests in three producing Northern Territory assets from Central.
The acquisition will increase the NZOG’s 2P (proved and probable) reserves by 14.5 million barrels of oil equivalent – a near five-fold increase, with further exploration upside potential.
The transaction comprises a 25 per cent interest in the Mereenie oil and gas fields, a 50 per cent interest in the Palm Valley gas field and a 50 per cent interest in the Dingo gas field.
The company will acquire 70 per cent and Cue Energy Resources (NZOG’s 50.04 per cent owned subsidiary) will acquire 30 per cent, of assets sold by Central Petroleum.
Central Petroleum will remain as operator and manage the gas sales function on behalf of NZOG and Cue Energy under a joint marketing agreement.