NZOG plans to drill a well in exploration block in central Sumatra

By Romel S. Gurky

New Zealand Oil & Gas Ltd (NZOG), listed on both New Zealand and Australian stock exchanges, said it plans to drill a well at an exploration block in central Sumatra in the next few months with an estimated drilling cost of approximately US$7 million, the company announced.

The company however did not provide further details about the drilling plan.

Apart from conducting drilling, the company will also conduct joint study over open acreage in Sumatra. The joint study permit was obtained by the company in August last year.

NZOG is partnering with Indonesian-focused partner Bukit Energy in conducting exploration activities in onshore central Sumatra.

Over the past six months, the company took further steps to establish new core areas of business with investments in Tunisia and Indonesia, while continuing to focus on its long standing presence in New Zealand.

In the southern offshore Taranaki basin, NZOG is looking to secure an additional joint venture partner ahead of drilling the Kakapo prospect, which subject to rig availability could take place next summer.

NZOG Chief Executive Andrew Knight says further opportunities need to be identified and secured. "In the year ahead there is the prospect of exploration drilling in Taranaki and Indonesia and a potential commitment to develop an oil field in Tunisia.?

?We are very actively pursuing further opportunities in all three of our core areas - New Zealand, South-East Asia and North Africa - ranging from study and permit applications through to drilling, asset deals and corporate acquisitions,? Knight said.

For the 6 months ended 31 December 2011, NZOG recorded total operating revenue of $54.6 million, compared to operating revenue of $40.5 million in the corresponding six month period a year earlier.

NZOG has reported a net profit after tax of $2.3 million, compared to a loss of $99.0 million for the corresponding period a year earlier.

Editing by Roffie Kurniawan