Greymouth Petroleum Confirms Agreement To Acquire New Zealand Oil And Gas Reserves And Production Facilities From Shell
Press Release by Greymouth Petroleum at 12:00 noon, 25/02/2002
New Zealand owned and operated Greymouth Petroleum confirmed today that it has reached agreement with Shell to acquire
Southern Petroleum Ohanga Limited and Shell's interest in the Kaimiro oil and gas fields, for an undisclosed sum.
The assets purchased by Greymouth comprise interests in three onshore producing oil and gas fields,
hydrocarbon-processing facilities with excess capacity, and pipelines connecting the fields and facilities with each
other and to export pipelines, terminals and markets. The fields and facilities are located onshore in the Taranaki
Basin, New Zealand.
Mark Dunphy, Chairman of New Zealand owned Greymouth Petroleum, noted, "We are delighted to be adding these strategic
assets to our existing production and exploration operations. Greymouth is not only acquiring proved producing
properties which immediately increase oil and gas production and cash flow, but more importantly adding significant
facilities and infrastructure that can enhance the value of our existing Motoroa oil field and Eastern Margin
exploration interests. With the Kaimiro field interest we will own and operate substantial additional oil and natural
gas processing capacity. Significantly also, we hope to attract a number of key former Fletcher Energy oil and gas
professionals to join our team in Taranaki."
ONGOING AGREEMENTS WITH SHELL
Greymouth has entered into agreements with Shell with regard to the use of oil storage facilities and for purchase of
crude oil produced. Greymouth and Shell have also entered into a strategic agreement, which provides Shell with the
right to participate in further development of the deeper Kapuni gas reservoirs present in the Kaimiro field.
The purchase by Greymouth will require various approvals and consents from New Zealand regulatory authorities and is
expected to complete in 30 days.
The assets acquired include the Kaimiro and Ngatoro properties, which are located onshore in the Taranaki Basin of the
North Island of New Zealand, approximately 10 miles East of Greymouth's Motoroa oil field. Greymouth is acquiring
working interests in two Petroleum Mining Licences known as the Kaimiro (PML 38091) and Ngatoro (PMP 38148) Fields. The
Kaimiro interest is an operated 100% interest in that field and the Ngatoro interest is a non operated 29.78% interest.
Greymouth has entered into service agreements with a Shell affiliate, the owner of the Omata Tank Farm, to utilize the
blending, storage and export capabilities of that facility. Greymouth and other users of the facility will transport
crude oil to the farm and receive McKee blended crude oil. Greymouth has entered into an agreement with Shell who will
purchase the crude oil using a reference price of APPI (Asian Petroleum Price Index) TAPIS, an internationally
recognized crude oil index, which is quoted at least weekly.
"We look forward to a long term relationship with Shell in Taranaki under these various agreements." said Mr Dunphy.
CURRENT GREYMOUTH INTERESTS
Greymouth currently holds interests in two exploration permits in New Zealand including a 76% operated interest in the
PEP 38464 block, in which Greymouth is undertaking a rejuvenation project on the Motoroa Oil Field, which was abandoned
in the 1970's. Greymouth's second interest (as to 100%) is the Eastern Margin block PEP 38739, a large tract of Taranaki
acreage, aligned North-South and adjacent to numerous recent discoveries. Together these permit interests approximate
2,083 km 2 and cover from coast to coast in Taranaki. The acquired Kaimiro and Ngatoro production interests comprise
some 86.162 km2 held under long term petroleum mining licences.
ENDS
MAP AVAILABLE A map of the Taranaki Basin showing the relevant oil and gas fields is available by emailing Kate Gordon
at Porter Novelli New Zealand Ltd - kateg@porternovelli.co.nz.
Issued by Greymouth Petroleum (25/2/02) by Porter Novelli New Zealand Ltd.