News Tamarind buys up Tag Oil wells
Canadian energy company TAG Oil’s decision to quit New Zealand by selling its six Taranaki onshore oil fields is an opportunity, says the head of the company which bought them.
TAG sold to Malaysian firm Tamarind for $44million and its country manager, Jason Peacock, said the deal was a chance for Tamarind to consolidate its presence here. The company was pleased to be adding to its existing New Zealand portfolio, which is currently focused offshore, Peacock said.
Tamarind is currently involved in marine discharge consent hearings, being held in New Plymouth, to drill wells in the Tui Field in the Taranaki Basin.
The consent sought to drill up to four of its existing five wells in the Tui Field, as well as consent to discharge hazardous materials from the semi-submersible drill rig during the drilling process.
The hearings began on November 6 and expected to continue into a second week. The company specialised in extending oil field productivity.
Tamarind will take control of Tag Oil’s six onshore wells in Taranaki including Cheal and Cardiff, Sidewinder, Supplejack, Puka, and Waitoriki, plus a 70 per cent stake in TAG Oil’s Cheal East wells, Tamarind’s website stated when announcing the sale.
The wells produce 1370 barrels of oil a day, which Tamarind planned to develop further and increase production. The sale is expected to be finalised in early 2019.
TAG Oil chief executive Toby Pierce said the company was pleased to announce the transaction for TAG’s New Zealand assets. ‘‘The sale presents an attractive premium to the current market value of the assets for TAG shareholders,’’ Pierce said on the company’s website.
The company would keep a small share of earnings from the New Zealand wells, and also bonus payments if targets were met. The sale would allow TAG Oil to develop exploration prospects for its Australian permits in the Surat Basin.
New legislation halting offshore exploration in New Zealand had influenced the company to sell up, TAG oil corporate development vice president Chris Beltgens told the New Zealand Herald. TAG have been operating in New Zealand since 2002.