NZOG is pursuing a number of exciting opportunities in Indonesia, primarily in onshore Sumatra.
Why Indonesia?
Indonesia has a long history as a significant oil and gas producer. However, its basins remain underexplored by western standards. Indonesia’s contract terms and business climate have been improving over the last decade as it looks to encourage petroleum activity.
Who is Bukit Energy?
Bukit is a new company put together by experienced oilmen with a deep understanding of Indonesia. Bukit has a strategic relationship with NZOG to identify and secure Indonesian opportunities.
What are NZOG’s commitments?
A number of opportunities have been identified; most of them in onshore Sumatra. This highly productive region offers open acreage, regular bid rounds and farm-in opportunities.
As a result of the assessments completed to date, a number of decisions have been taken. The first was an application for a Joint Study Agreement (JSA) over open acreage in northern Sumatra, which was awarded in August 2011.
In December 2011, a second JSA was awarded, also in Sumatra, and a third JSA application was made.
Also in December 2011, NZOG acquired 90% of a company which has an interest in the Kisaran exploration permit in Central Sumatra, effectively giving NZOG a 22.5% share of the permit. A well is planned for the first half of 2012. NZOG will contribute US$6.5m toward the cost of the first well, and will share any future cost on a participating interest basis.
What are the future plans?
NZOG is working to target opportunities in Indonesia that are: in proven basins; generally onshore therefore low cost; close to existing infrastructure; and more likely to be oil than gas.
NZOG will use modern methods including 3D seismic acquisition and apply high quality technical assessment to identify a portfolio of low risk opportunities.
NZOG intends building a significant Indonesian portfolio to complement its New Zealand holdings.
