By OGJ editors
HOUSTON, Feb. 6 -- Pogo Producing Co. reported Friday that the New Zealand Ministry of Economic Development has awarded the Houston-based independent an exploration license on each of the three blocks it bid on in New Zealand's September 2003 bidding round.
The three new licenses, Blocks E, G, and I, total 1,014,000 acres and lie in the Taranaki basin, off the west coast of New Zealand's North Island. Pogo's three successful bids were included among 23 total bids submitted on 14 blocks in the bidding round, according to New Zealand authorities.
Pogo's 100% owned licenses provide for 5-year initial exploration terms, subject to extensions. Pogo's bid includes a plan to acquire at least 1,000 sq km of new 3D seismic within the first 2 years across the three licenses. Drilling decisions will be made thereafter, based on the results of that seismic analysis, Pogo said.
The blocks lie in less than 100 m of water "within a proven basin in a country with a very favorable economic and political climate," said Paul G. Van Wagenen, Pogo Chairman and CEO.
Pogo began its analysis of Taranaki basin several years ago, Van Wagenen explained. "This New Zealand bid round coincides with the return of much higher prices for newly discovered New Zealand natural gas, and the continuing availability of world oil prices. Moreover, the license terms offer relatively low royalties and taxes, which are also very appealing to us," he said.