Dear Aorere Resources shareholder,
This announcement has just been released to NZX.
16 September 2013
Aorere and Mosman to drill Kotuku wells this summer
Aorere Resources and Perth-based Mosman Oil and Gas plan to drill two onshore wells this summer at the Kotuku prospect on the West Coast.
This follows approval from New Zealand Petroleum and Minerals to change conditions relating to Petroleum Exploration Permit 38526 over the Kotuku oil seeps near Greymouth.
“This will be a significant investment by the permit holders in the West Coast economy, which has been reeling from economic setbacks over recent years,” according to Aorere chairman Dene Biddlecombe.
“With the two-well programme we intend to gain sufficient data to establish an oil discovery and feasibility of commercial development which may enhance the oil and gas industry on the West Coast. Our partners Mosman have indicated additional areas of the West Coast which are of interest to them for future investment.”
The new programme brings drilling ahead of the seismic testing with the plan to drill two exploration wells within the next 12 months, after which the permit holders will acquire seismic followed by another, perhaps deeper, exploration well.
Mosman chairman John W Barr said that he believes the prospect is de-risked by the demonstrated working petroleum system.
“We think it could have positive cash flow potential quite quickly from shallow onshore oil development, as well as from multiple, deeper exploration plays.”
Mosman directors John W Barr and Andy Carroll are visiting New Zealand next week and with Aorere chairman Dene Biddlecombe will meet West Coast stakeholders to discuss plans.
In April Aorere agreed to sell its interest in the permit to Mosman subsidiary Petroleum Creek. Aorere gained a 40% shareholding in Petroleum Creek and Mosman committed to fund the current work programme for the permit. Mosman can exercise a call option before 31 December 2013 to acquire Aorere’s Petroleum Creek shares by paying $900,000 in cash or in Mosman shares. In either case, Aorere has a 2% royalty over all petroleum obtained from the permit.
Mosman Oil and Gas brings extensive international experience in the oil and gas exploration sector and is backed by European, Australian and Asian investors. Aorere Resources invests in New Zealand early stage oil, gas and minerals projects.
Dene Biddlecombe, Chairman, Aorere Resources, +64 27 230 0166 or firstname.lastname@example.org
John W Barr, Chairman Mosman Oil and Gas, +61 418 912 885 or email@example.com