Prospective resources in Indonesia

Posted on 8 April 2016

New Zealand Oil & Gas are presenting at international farm-out conferences and will disclose prospective resources in its directly-held Indonesia interests.

The company’s prospective resources in Indonesia have not previously been disclosed. The resources are held across five production sharing contracts, three of which cover conventional reservoirs, while two are unconventional layers.

The resources in this announcement do not include Indonesian prospective resources of Cue Energy, in which New Zealand Oil & Gas holds a 48.11 per cent interest.

Contingent resources are being introduced as the company markets its balanced portfolio in Indonesia. The company has a controlling interest in Cue Energy, whose Sampang asset in East Java is revenue-producing with further development potential to complement its producing reserves. New Zealand Oil & Gas has contingent resources from near term development options at Kisaran, and prospective resources in conventional and unconventional plays, including drill-ready prospects at Mahato and Bohorok.

With elevated energy demand and good fiscal terms, the outlook for Indonesia is positive. Indonesia is one of South East Asia’s most energy-hungry economies. Sumatra is particularly attractive because it has a large, well-connected infrastructure network and an energy-hungry population.

In its Interim Report New Zealand Oil & Gas reported contingent resources in its interest in the Kisaran Production Sharing Contract in Sumatra, Indonesia.

Last year New Zealand Oil & Gas announced prospective resources for its 50 per cent share of its operated Barque prospect off the east coast of New Zealand’s South Island.

The full disclosure is attached.