New Zealand Oil & Gas purchases additional Amadeus basin assets

New Zealand Oil & Gas Group (NZOG) will purchase an additional 25% equity interest in the Mereenie licenses, Amadeus basin, in Australia's Northern Territory from Macquarie Mereenie Pty. Ltd. The acquisition will double the company’s reserves and production from the field.

In June 2023, recompletions increased production from Mereenie by 1.5 teraJoules/day. An in-field data acquisition campaign started late in the third quarter which will optimize infill drilling at Mereenie.

Future activity includes two infill wells in first-half 2024 with the Stairway appraisal and further infill wells commencing thereafter. A flare-gas recovery compressor has been installed to further boost production and reduce emissions.

The acquisition will double NZOG’s Mereenie 2P reserves to 13.4 MMboe and increase NZOG’s total reserves across New Zealand, Amadeus basin, and Indonesia to 23 MMboe.

New Zealand Oil & Gas will make an upfront payment of AU$42.5 million for the asset, plus further contingent payments of AU$9 million over the next 24 months subject to certain conditions being met.

Macquarie Mereenie will sell its entire 50% interest in Mereenie. In addition to the 25% acquired by NZOG, Horizon Oil Ltd. will acquire the remaining 25%.

Upon completion, Central Petroleum will be operator at Mereenie (25%) with partners NZOG (42.5%), Horizon (25%), and Cue Energy Resources (7.5%).