OIL

[FRED]

Uptrend

NZ has it.

Most of us kiwis dont even know.

Dollar will drop.

TIP GUYS......BUY A NZ OIL COMPANY.

[Base Trader]

You will send the NZOG guys nuts with this comment.

[The GrandMaster]

he's a cheeky one, but I wouldn't want to dissuade him :D

[luckysexice]

NZO and NZR which one will get the benfit from oil price rise

[Gofor Broke]

quote:Originally posted by luckysexice

NZO and NZR which one will get the benfit from oil price rise

niether cullen will make sure!

[bermuda]

I implore all readers interested in oil to visit www.energybulletin.net and read/listen to the following

1.Jan 6 Robert Hirsch "Tells it like it is "

2.Jan 9 Peak oil Jan 9 "ENERGY the Big story of 2005"

3.Jan 20 "What they dont want you to know about the coming oil crisis"

By absorbing these and future articles readers will gain a very important insight into a truly frightening energy crisis.

The more people that understand this coming crisis the better.

[digger]

I also concure bermuda that enegry bulletin is a must read for anyone interested in oil.The real important things about the stories in the article bermuda has listed is that in a few years everyone will know about the oil crises it is just that most will be learning the real hard way.

[Lizard]

Yes, IMO oil has, and will continue to go up in price. So companies with oil, natural gas and coal reserves make a good initial investment and many of these have provided excellent returns in the last few years. However, the cost of extraction is booming also and the next step is to focus on who the oil companies are paying and where the money is flowing to...

[small fish]

Hi guys, Yes I must say the reading I have done on the theory of 'Peak oil' and other energy alternatives by Simmons is some of the most interesting reading I have done in a while (ok so I dont read to much). Certainly is an eye opener as to the challenges the world will face in the coming years. I guess while all of us are investing in oil companies and trying to profit from the situation it might be too easy to focus on these theories. Afterall it could be years before such a crises is finally accepted by world powers and a new value of oil is established. I can honestly say im not entirely sure where us investors stand if the world goes into a major recession or depression. Everybody will still need oil so I guess there is a limited downside but the volume and margin is going to be influenced by a many number of factors.
I may have made and lost many a fortune by the time the world wakes up to the issues if indeed it ever has to. Volitile times ahead without doubt.

[bermuda]

The biggest problem about the forthcoming oil crisis is that not enough people are aware of it and consequently not enough urgent work is being done now to avoid it.As a further consequence we (and certainly our children) will grow up in a world scrambling for energy in an uncontrolled manner that could lead to major recession and war.

As one analyst remarked "if you throw a frog into a pot of boiling water it will immediately jump out.....but if you gently heat a pot of cold water with a frog in it the frog wont realise it is dying until too late.The same goes for oil.If we just go with the flow ( reducing) then the world will realise the consequences all too late..

It is going to take 15-20 years to equip the world with alternative energy to cope with a reduction of oil.

WE HAVE TO START NOW !!.

[scamper]

at which point does awareness of the pending oil diminution make investment in alternative energy sources a smart move?

btw, scamper absolutely loved the central otago-type landscape of spain's central high plateau that was festooned with graceful wind turbines. all the tourists oohed and aaahed to the extent that tour buses stopped for photo ops (and not just the japanes tourists who will photograph anything/nothing...)

[arjay]

A big problem is public fatigue. We've (viz ordinary public who are exposed to general info and don't access/aren't aware of such forums as energy.net) been told that "we're gonna run out of oil within 20 years" for the past 40 years at least. I remember such claims being made in the late 60's. So, seems to me there are three scenarios:

1. Not much will change in our lifetimes
2. Catastrophe (war probably)
3. Gradual weaning off oil due to high fuel costs (smaller cars, fewer trips, more and better recycling of plastic etc) > lower demand > what we've got will last longer.

[morpork]

If I may be so bold as to mention the Green party
Jeanette Fitzsimmons spoke at a seminar early in December last year and placed a lot of emphasis on Solar Energy.If the govt stopped pssin about every home in NZ would have sufficient solar electricity to cut our present demand by roughly 30%, however it will likely go the way of the Knowledge Economy.Too much of a good idea for a govt dept to get its head round or work towards

[waaihoek]

.

As of 4:55 pm, oil price is at US$69 / barrel

Maybe 70 buks again ?

W

http://www.bloomberg.com/markets/commodities/energyprices.html

[lakedaemonian]

quote:Originally posted by morpork

If I may be so bold as to mention the Green party
Jeanette Fitzsimmons spoke at a seminar early in December last year and placed a lot of emphasis on Solar Energy.If the govt stopped pssin about every home in NZ would have sufficient solar electricity to cut our present demand by roughly 30%, however it will likely go the way of the Knowledge Economy.Too much of a good idea for a govt dept to get its head round or work towards


I'm not a big fan of the Green Party, but I do have to say I am 100% behind their solar initiatives.

I reckon a government supported program to subsidize solar water heating and solar power generation in the home would be an excellent idea.

Support could come via standarized unit bulk buy economies of scale, direct/indirect subsidy, tax rebates, etc.

Encourage retrofitting in existing homes with a target of say 2025, and require installation in all new residential construction.

It would also put more than a few folks to work in well paying manufacturing and installation jobs.

It could also be complemented with other energy efficiency initiatives like window and wall insulation minimum standards for new construction and possible support for retrofitting.

[morpork]

Yes, and because of the size of the project, we could employ most solo mums and sickness beneficierys, or prison/home detention inmates.I believe they could cope with 5 hours a day simple assembly/packaging work.It would be cheaper than any of Muldoons Think Big Debt projects and the benefits would be appreciated by every household

[Mick100]

quote:Originally posted by morpork

If I may be so bold as to mention the Green party
Jeanette Fitzsimmons spoke at a seminar early in December last year and placed a lot of emphasis on Solar Energy.If the govt stopped pssin about every home in NZ would have sufficient solar electricity to cut our present demand by roughly 30%, however it will likely go the way of the Knowledge Economy.Too much of a good idea for a govt dept to get its head round or work towards


Yeah, I agree - solar water heaters are the way to go for most of the country. It looks like a no brainer to me.
Why isn't it happenning?
,

[lanenz]

quote:Originally posted by Mick100


quote:Originally posted by morpork

If I may be so bold as to mention the Green party
Jeanette Fitzsimmons spoke at a seminar early in December last year and placed a lot of emphasis on Solar Energy.If the govt stopped pssin about every home in NZ would have sufficient solar electricity to cut our present demand by roughly 30%, however it will likely go the way of the Knowledge Economy.Too much of a good idea for a govt dept to get its head round or work towards


Yeah, I agree - solar water heaters are the way to go for most of the country. It looks like a no brainer to me.
Why isn't it happenning?
,
The cost. It takes years to pay for itself unless you install it yourself. auckland would suffer mass blackouts asthey dont see any sun.:)

[warthog]

quote:Originally posted by lanenz

The cost. It takes years to pay for itself unless you install it yourself. auckland would suffer mass blackouts asthey dont see any sun.:)


Who says you need clear skies to benefit from solar power?

Also, it doesn't need to heat water to boiling point to be useful. My parents in law live in a country where merely passing water through pipes a metre or so underground assists hugely in keeping down heating costs (it gets kinda nippy - down to -20C - on the surface from time to time).

[paul29]

Swift Energy Company has announced it plans to spend US$300 million to US$325 million in total capital expenditures in 2006, of which 15% would be spent on its New Zealand activities.
The New Zealand capital budget would amount to at least US$45 million (~NZ$66 million).

In the 2006 capital expenditure report, Swift Energy said it's efforts in New Zealand this year will focus on further delineation and development of the Kauri and Manutahi sands.

Swift Energy expects to drill two to four wells targeting the intermediate depth Kauri sands and two to four wells in the shallow Manutahi sand.

Swift Energy plans to continue with its Tarata thrust exploration activity and is currently drilling the Goss and Trapper exploration wells in partnership with Mighty River Power.

The company also plans to drill the Kowhai exploration well in PEP 38742 near Waitara later this year. Swift Energy operates the permit in a joint venture with Ballance Agri-Nutrients Ltd, a fertiliser company which uses natural gas to make urea fertiliser at Kapuni.

Additional seismic data is to be acquired, both onshore and in the offshore Kaheru block in PEP 38495, south-west of the company's onshore Kauri mining permit.

About 85% of the Houston-based company's budget is targeted for US domestic expenditure, primarily in its South Louisiana region.

Swift Energy has increased its capex spending in Taranaki each year over the last few few years. In 2004 it budgeted for about NZ$40 million and a year ago announced it would spend about NZ$55 million for 2005. However last year New Zealand capital spending accounted for 20% of the company's capital spending — a bigger share than this year’s 15%.

In a presentation to analysts Swift says that the company has drilled 42% of the wells drilled in New Zealand in the three years to 2005. Swift lists 23 of the wells as development wells with only four exploration wells drilled over this period — all in 2005.

TAG Oil and Austral Pacific Energy have jointly acquired the onshore Taranaki assets of Australian company Tap Oil.
TAG Oil announced that it had made the acquisition in a 50/50 joint venture with Austral Pacific.

TAG said this would add strategic new acreage in six additional onshore permits and further increase its working interest in three existing permits. TAG has an interest in five other onshore Taranaki permits. All new acquisitions are exploration permits with the exception of PMP 38153, the Kahili Mining Permit. TAG plans a new well at Kahili later this year. The Kahili-1 discovery well initially flowed significant quantities of gas has since stopped producing and is currently shut in. Newly acquired seismic has led to an updip location planned for the new well.

Drilling and completion inventory was also acquired by the joint venture.

Drew Cadenhead, CEO of TAG Oil said: "The acreage acquired from Tap is contiguous with our existing focus in the production fairway of onshore Taranaki. We're happy to increase our interest in existing projects like our SuppleJack gas/condensate project. Since Christmas, we have more than doubled our net acreage in this key area.”

"We are at a much higher working interest in our 3-D seismically defined Waitoriki deep gas prospect scheduled to be drilled later this year, and we've added a number of new deep gas prospects.

Perth-based Tap Oil said the terms of the sale of its onshore Taranaki permit interests to the TAG-Austral Pacific joint venture were effective from 1 January 2006. Tap's onshore Taranaki interests, comprised PEP 38736, 38741, 38744, 38745, 38746, 38748, 38765 and 38766 and PMP 38153 (Kahili) and associated drilling materials.

At completion of the sale process, which is subject to Ministerial approval, Tap will receive consideration comprising an overriding royalty interest in the permits and around $2.5 million cash.

TAG is an independent Calgary-based company while the Wellington-based Austral Pacific has substantial Canadian shareholding. Both companies are listed on the Toronto Venture Exchange, while

[paul29]

Tanker Pacific wins Maari FPSO contract; Ensco to drill

20 March, 2006 Tanker Pacific Offshore Terminals of Singapore has been selected to supply and operate the FPSO vessel for the NZ$540 million Maari oilfield project, while Ensco Oceanic International has been selected for the development drilling.
In its latest quarterly report the Sydney-based Horizon says that the Maari joint venture (operated by OMV) has executed letters of intent with the three major contractors selected for the 50 million barrel oil field development.

Tanker Pacific is the world's largest private offshore storage provider. The floating production, storage and offloading (FPSO) vessel will process and store oil from the Maari field before it is offloaded to calling tankers.

The development drilling is to be carried out by the large international offshore drill operator Ensco Oceanic International Company.

The third major contract for the wellhead platform, as announced in January, is to be built and installed by Perth-based engineering and construction firm Clough Ltd.

Horizon says that the letters of intent are based on fixed price tenders by the successful bidders for the major contracts. The letters allow the contractors to get under way in advance of final documentation so that project deadlines will be met.

The development is now proceeding on track, with project teams for construction of the wellhead platform and FPSO mobilized, Horizon reports.

A Maari construction schedule, published by Horizon from a November presentation to the annual meeting, indicates that the wellhead platform is due to be installed in November 2007.

This would be followed in December by both the commencement of development drilling and the installation of moorings and flowlines ready for the FPSO to arrive in early 2008. The field is due to be commissioned March 2008.

Horizon says the Maari joint venture has applied for an appraisal extension over the nearby Manaia discovery (the Maui-4 well drilled soon after the original Maui gas field discovery). Approval of the Manaia discovery is likely be carried out in association with Maari development drilling. Production from Manaia will be processed through the Maari facilities.

[paul29]

The New Zealand energy subsidiary of Japan’s second largest trading house, Mitsui & Co Ltd, said it has increased its stake in the Tui oil exploration project in offshore Taranaki from 12.5% to 35%.
Mitsui E&P New Zealand Ltd, has agreed to pay New Zealand Overseas Petroleum approximately US$50 million for an additional 22.5% interest in the Tui mining permit PMP 38158. The deal also includes a 22.5% interest in the Hector South Sub Block of PEP 38483, near the Tui field.

Last month, one of the other Tui partners, Australian Worldwide Exploration Ltd, that it had acquired a further 22.5% interest in the permit when it brought all of the shares in New Zealand Overseas Petroleum.

Mitsui & Co said it will spend about US$140 million, including the cost of its additional 22.5 % interest, to help put Tui offshore oil fields into commercial production from mid-2007.

Mitsui said it is seeking to enhance its upstream business amid surging crude oil prices.

Mitsui participates in many other projects with AWE in the Oceania region, and this acquisition of additional interests by both Mitsui and AWE will further strengthen the relationship between the two companies.

Mitsui considers this acquisition a further growth of high quality upstream assets in the region, and aims to pursue continuous development and production of natural resources in the future.

The interest holders in the Tui Area oil project will now be: operator, New Zealand Overseas Petroleum Ltd (now an AWE subsidiary) 22.5%; Mitsui E&P New Zealand, 35.0%; AWE, 20.0%; New Zealand Oil & Gas Ltd, 12.5%; and Pan Pacific Petroleum Ltd, 10.0%.

The Tui oil fields have estimated recoverable oil reserves of 27 million barrels with a peak output of 50,000 barrels a day.

[paul29]

Exploration and production

Producing fields
Currently, natural gas is produced entirely in the Taranaki region from 11 fields. Production has been dominated since the late 1970s by the Maui field (65.8% of net production in the year to March 2005). (This information and much of the subsequent discussion comes from the July 2005 Energy Data File, published by the Ministry of Economic Development.) The Maui field (which is owned by Shell Petroleum Mining, OMV and Todd Energy) and the Kapuni field (which is owned by Shell Petroleum Mining and Todd Energy) together provide 81% of total production. They are both operated by Shell Todd Oil Services Limited.

The remaining 19% of net production in the year to March 2005 was provided from:

McKee and Mangahewa, owned by Todd Taranaki Limited
Waihapa/Ngaere and Tariki/Ahuroa fields, owned by Southern Petroleum New Zealand Exploration Limited and Swift Energy New Zealand Limited
Rimu and Kauri fields owned by Swift Energy New Zealand Limited
Ngatoro and Goldie fields, owned by Greymouth Petroleum Acquisition Company Limited, Southern Petroleum (Ohange) Limited and Greymouth Petroleum Limited
Kaimiro, owned by Greymouth Petroleum Acquisition Company Limited.


Total New Zealand gas production in the year ended March 2005 (Excluding gas re-injected or flared and LPG extracted.) was 155.6 PJ, a decline of 8.7% compared with 170.4 PJ in the year ended March 2004. Many of the fields, in addition to producing natural gas, provide other useful products, which include condensate, naphtha, natural gasoline, CO2 and LPG. These other products are separated and either exported or sold locally. For example, a proportion of LPG is shipped to the South Island.

Exploration and development
There has been a substantial increase in gas exploration and development activities from 2004, and in the number and type of seismic acquisition surveys conducted. Exploration and development continue to be centred mainly in the Taranaki region and off the Taranaki coast.

The drilling of extended reach production wells (from an onshore location) in the Pohokura field commenced during the second quarter of 2005. The drilling of offshore production wells is scheduled to commence in early 2006. Initial production is expected to be 50 PJ of gas per annum commencing in late 2006. The Pohokura joint venture partners are Shell Exploration NZ Ltd (48%), OMV NZ Ltd (26%) and Todd Pohokura Ltd (26%).

Australian-based Origin Energy has outlined its proposed developments for the Kupe oil and gas field. Kupe is expected to produce 20 PJ of gas per annum when it comes on-stream. Production from the Kupe field is expected to commence in the second quarter of 2007.



Transmission

Transmission pipelines transport large volumes of natural gas under high pressure from production fields to distribution networks, or to large customers along the pipeline.

There are over 3,400 km of high-pressure gas transmission pipelines in New Zealand. The major gas transmission pipelines are:

NGC’s network (although NGC has now been acquired by Vector), which extends to most major North Island centres and
The Maui pipeline, extending from South Taranaki north to Huntly, owned by Maui Development Limited.


Other transmission pipelines are owned by Todd Petroleum and Shell, Todd Taranaki, Swift Energy and Westech Energy.

On the 1st October 2005 an open access pipeline regime for the Maui pipeline came into effect, allowing all parties to ship gas through the Maui pipeline. The NGC/Vector transmission system already operated open access arrangements.



Distribution

Distribution networks transport gas from gate stations and reticulate it into residential houses, offices, hospitals, factories and other businesses.

There are more than 2,800 km of intermediate, medium and low pressure gas distribution pipeline networks in the North Island connected to the high pressure transmission system.

There are four gas distributors: NGC/Vec

[arjay]

Whatever happened to those two gas fields they discovered near Wairoa a few years ago? I thought they were commercial and were going to supply gas to the Hawkes Bay. htere was a news article once about hte locals gettting excited about engineering jobs coming up during development.

[Prophet]

Oil price fall predicted
Globe and Mail Update

Ben Dell, an energy analyst at Sanford C. Bernstein & Co., is a long-term oil bull but his short-term outlook is decidedly bearish, warning investors that the price of crude could fall significantly in the next year and a half.

In a report Tuesday, Mr. Dell said a big reason underpinning his outlook is an expected rush of new oil production from the United States, Britain and Canada, areas considered by global industry players to be mature regions with little to offer the market in terms of fresh output.

But while the United States and Britain have reported nothing but production declines in recent years, new projects such as BP PLC's Thunder Horse in the Gulf of Mexico and Calgary-based Nexen Inc.'s Buzzard in the North Sea means significant output is coming later year, Mr. Dell said.

That additional production could help ease the supply crunch of recent years, especially as production capacity increases from countries such as Saudi Arabia, Angola and Russia also emerge.

"It is often assumed supply from mature areas cannot grow," Mr. Dell said in the report but he noted that frenzied levels of drilling are producing results and high prices have encouraged companies to chase smaller projects that would have otherwise been left to sit.

"The cushion of spare capacity should grow meaningfully through 2006 and 2007," he said, "reducing the risks associated with supply disruption and placing further downward pressure on crude prices."

The benchmark price of oil on the New York Mercantile Exchange has been steady around the $60 (U.S.) a barrel level in recent weeks but Mr. Dell said the price could average $45 a barrel in 2007, a steep 25-per-cent decline.

He said analysts will start cutting their profit estimates for energy companies, which he said has historically led to poor performances on the stock market. He advised general caution but didn't provide specific recommendations.

However, in the longer term, he said lower prices next year will eventually mean higher prices, as marginal projects are cut back. He prices oil at about $60 a barrel in 2010.

[whatsup]

Swift Energy Company has announced it plans to spend US$300 million to US$325 million in total capital expenditures in 2006, of which 15% would be spent on its New Zealand activities.
The New Zealand capital budget would amount to at least US$45 million (~NZ$66 million).

In the 2006 capital expenditure report, Swift Energy said it's efforts in New Zealand this year will focus on further delineation and development of the Kauri and Manutahi sands.

Swift Energy expects to drill two to four wells targeting the intermediate depth Kauri sands and two to four wells in the shallow Manutahi sand.

Swift Energy plans to continue with its Tarata thrust exploration activity and is currently drilling the Goss and Trapper exploration wells in partnership with Mighty River Power.

The company also plans to drill the Kowhai exploration well in PEP 38742 near Waitara later this year. Swift Energy operates the permit in a joint venture with Ballance Agri-Nutrients Ltd, a fertiliser company which uses natural gas to make urea fertiliser at Kapuni.

Additional seismic data is to be acquired, both onshore and in the offshore Kaheru block in PEP 38495, south-west of the company's onshore Kauri mining permit.

About 85% of the Houston-based company's budget is targeted for US domestic expenditure, primarily in its South Louisiana region.

Swift Energy has increased its capex spending in Taranaki each year over the last few few years. In 2004 it budgeted for about NZ$40 million and a year ago announced it would spend about NZ$55 million for 2005. However last year New Zealand capital spending accounted for 20% of the company's capital spending — a bigger share than this year’s 15%.

In a presentation to analysts Swift says that the company has drilled 42% of the wells drilled in New Zealand in the three years to 2005. Swift lists 23 of the wells as development wells with only four exploration wells drilled over this period — all in 2005.

TAG Oil and Austral Pacific Energy have jointly acquired the onshore Taranaki assets of Australian company Tap Oil.
TAG Oil announced that it had made the acquisition in a 50/50 joint venture with Austral Pacific.

TAG said this would add strategic new acreage in six additional onshore permits and further increase its working interest in three existing permits. TAG has an interest in five other onshore Taranaki permits. All new acquisitions are exploration permits with the exception of PMP 38153, the Kahili Mining Permit. TAG plans a new well at Kahili later this year. The Kahili-1 discovery well initially flowed significant quantities of gas has since stopped producing and is currently shut in. Newly acquired seismic has led to an updip location planned for the new well.

Drilling and completion inventory was also acquired by the joint venture.

Drew Cadenhead, CEO of TAG Oil said: "The acreage acquired from Tap is contiguous with our existing focus in the production fairway of onshore Taranaki. We're happy to increase our interest in existing projects like our SuppleJack gas/condensate project. Since Christmas, we have more than doubled our net acreage in this key area.”

"We are at a much higher working interest in our 3-D seismically defined Waitoriki deep gas prospect scheduled to be drilled later this year, and we've added a number of new deep gas prospects.

Perth-based Tap Oil said the terms of the sale of its onshore Taranaki permit interests to the TAG-Austral Pacific joint venture were effective from 1 January 2006. Tap's onshore Taranaki interests, comprised PEP 38736, 38741, 38744, 38745, 38746, 38748, 38765 and 38766 and PMP 38153 (Kahili) and associated drilling materials.

At completion of the sale process, which is subject to Ministerial approval, Tap will receive consideration comprising an overriding royalty interest in the permits and around $2.5 million cash.

TAG is an independent Calgary-based company while the Wellington-based Austral Pacific has substantial Canadian shareholding. Both companies are listed on the Toronto Venture Exchange, while

Has anyone any update of what TAG oil is up to these days, are they still around.

[whatsup]

Swift Energy Company has announced it plans to spend US$300 million to US$325 million in total capital expenditures in 2006, of which 15% would be spent on its New Zealand activities.
The New Zealand capital budget would amount to at least US$45 million (~NZ$66 million).

In the 2006 capital expenditure report, Swift Energy said it's efforts in New Zealand this year will focus on further delineation and development of the Kauri and Manutahi sands.

Swift Energy expects to drill two to four wells targeting the intermediate depth Kauri sands and two to four wells in the shallow Manutahi sand.

Swift Energy plans to continue with its Tarata thrust exploration activity and is currently drilling the Goss and Trapper exploration wells in partnership with Mighty River Power.

The company also plans to drill the Kowhai exploration well in PEP 38742 near Waitara later this year. Swift Energy operates the permit in a joint venture with Ballance Agri-Nutrients Ltd, a fertiliser company which uses natural gas to make urea fertiliser at Kapuni.

Additional seismic data is to be acquired, both onshore and in the offshore Kaheru block in PEP 38495, south-west of the company's onshore Kauri mining permit.

About 85% of the Houston-based company's budget is targeted for US domestic expenditure, primarily in its South Louisiana region.

Swift Energy has increased its capex spending in Taranaki each year over the last few few years. In 2004 it budgeted for about NZ$40 million and a year ago announced it would spend about NZ$55 million for 2005. However last year New Zealand capital spending accounted for 20% of the company's capital spending — a bigger share than this year’s 15%.

In a presentation to analysts Swift says that the company has drilled 42% of the wells drilled in New Zealand in the three years to 2005. Swift lists 23 of the wells as development wells with only four exploration wells drilled over this period — all in 2005.

TAG Oil and Austral Pacific Energy have jointly acquired the onshore Taranaki assets of Australian company Tap Oil.
TAG Oil announced that it had made the acquisition in a 50/50 joint venture with Austral Pacific.

TAG said this would add strategic new acreage in six additional onshore permits and further increase its working interest in three existing permits. TAG has an interest in five other onshore Taranaki permits. All new acquisitions are exploration permits with the exception of PMP 38153, the Kahili Mining Permit. TAG plans a new well at Kahili later this year. The Kahili-1 discovery well initially flowed significant quantities of gas has since stopped producing and is currently shut in. Newly acquired seismic has led to an updip location planned for the new well.

Drilling and completion inventory was also acquired by the joint venture.

Drew Cadenhead, CEO of TAG Oil said: "The acreage acquired from Tap is contiguous with our existing focus in the production fairway of onshore Taranaki. We're happy to increase our interest in existing projects like our SuppleJack gas/condensate project. Since Christmas, we have more than doubled our net acreage in this key area.”

"We are at a much higher working interest in our 3-D seismically defined Waitoriki deep gas prospect scheduled to be drilled later this year, and we've added a number of new deep gas prospects.

Perth-based Tap Oil said the terms of the sale of its onshore Taranaki permit interests to the TAG-Austral Pacific joint venture were effective from 1 January 2006. Tap's onshore Taranaki interests, comprised PEP 38736, 38741, 38744, 38745, 38746, 38748, 38765 and 38766 and PMP 38153 (Kahili) and associated drilling materials.

At completion of the sale process, which is subject to Ministerial approval, Tap will receive consideration comprising an overriding royalty interest in the permits and around $2.5 million cash.

TAG is an independent Calgary-based company while the Wellington-based Austral Pacific has substantial Canadian shareholding. Both companies are listed on the Toronto Venture Exchange, while

Has anyone any update of what TAG oil is up to these days, are they still around.