NZP&M awarded the blocks in New Zealand’s 2012 Block Offer and the permits have been assigned the Petroleum Exploration Permit (PEP) numbers 54873, 54876, 54877, and 54879.
TAG chief executive officer Garth Johnson said the awarded blocks will complement the company’s current operations in the Taranaki basin.
"Our new oil and gas production facility expansion and associated pipelines in this area unencumber all production, transportation and marketing of TAG’s oil and gas, including any new discoveries from these newly awarded lands," Johnson added.
The company has formed a joint venture with East West Petroleum, which will fund four wells within PEP 54876, 54877 and 54879 in 2013 to gain 50% interest in PEP 54876 and PEP 54879 and a 30% interest in PEP 54877, whereas TAG Oil will operate the permits.
The four blocks will add 37,253 gross acres in the main Taranaki oil and gas discovery fairway; and the permits will initially provide 10 shallow, low-risking drilling prospects, and several leads identified on 3D seismic.
