ANDY JACKSON / STUFF
Tag Oil Ltd Cheal Production site is one of the six wells sold by Tamarind Resources
Tamarind TAG Oil New Zealand's acquisition of assets worth $ 30 million (€ 44 million) will enable "continue to use existing company capacity in New Zealand," said Head of State Jason Peacock.
The company, owned by a Malaysian company, was pleased to add the existing New Zealand portfolio, which is currently targeting the offshore market, said Peacock.
Tamarind is currently taking part in a lawsuit on exhaust gases in New Plymouth to drill bores at Tui Square in the Taranaki Basin.
The consent sought to drill up to four of the existing five shafts in the Tui field and agree to dispose of hazardous materials from the semi-submersible drilling machine during the drilling process.
The hearing started on 6 November and is expected to continue in the second week.
The company specializes in expanding oil field productivity.
Read more: Tamarind Resources is seeking drill acceptance at Taranaki Bight
The sale was announced on sale on the Canadian market of TAG Oil in the six oilfields of Taranaki, including Cheal and Cardiff, Sidewinder, Supplejack, Puka and Waitoriki, as well as 70% of TAG Oil's Cheal East battery wells in Taranaki, Tamarind.
Now the shaft produces 1,370 barrels each day and Tamarind plans to continue to develop and increase its output.
It is expected that the sale will be completed in early 2019.
TAG Oil Executive Director Toby Pierce said the company was pleased to announce a deal on TAG New Zealand assets.
"Selling creates an attractive premium for the current market value of assets for TAG shareholders," Pierce said on the company's website.
The company retains a small part of the income from New Zealand's wells, as well as bonus payments, if the goals are met.
The sale would allow TAG Oil to develop exploration prospects for Australian permits in the Surat Basin.
The new legislation that has stopped the North-West exploration in New Zealand has affected the sale of these companies, Chris Beltgens, Vice President of TAG Oil Products Corp., told The New Zealand Herald.
TAG has been operating in New Zealand since 2002.