Greymouth acquires Westech’s Taranaki mining permits

Greymouth has acquired 100% of the Surrey PMP 38 159 and the Windsor PMP 38 152. The company has also acquired from Westech a one third interest in both the Radnor PMP 38 157 mining permit which is operated by Bridge Petroleum and the TAG Oil-operated exploration permit PMP 38 751 which abuts Radnor.

Greymouth said it had acquired the interests for an undisclosed sum.

Greymouth is also taking an assignment of gas contracting arrangements with Methanex and Vector. The transactions have an effective date of 1 April, 2007.

John Sturgess, chief of operations of Greymouth Petroleum said the purchases would allow synergy benefits with the company’s other petroleum production operations and fields in central Taranaki. Greymouth produces oil and gas from the Kaimiro, Ngatoro, Goldie and Turangi fields.

Westech is now concentrating its New Zealand interests in the onshore East Coast Basin and offshore Taranaki. The company recently drilled the Waitahora-1 well in northern Hawkes Bay in a retest of its 1998 gas discovery Kauhauroa-1. A multi-well programme is planned for the Kauhauroa structure.

Westech this year also took over as operator of the offshore north Taranaki permit PEP 38 491 in a joint venture with Mighty River Power.

Greymouth said a number of wells are also planned for its new permit areas. Well drilling operations in PEP 38 751 are planned for the next quarter.

In the next 12 months, Greymouth will drill wells in the Surrey oil field area and expects at least two wells to be drilled in the Radnor area, following resolution of the forward work programme in that permit.

Source: Greymouth Petroleum