NZOG secures permit in Mediterranean's Gulf of Gabes of Tunisia

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16 June 2011, Oil, Gas

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A two year prospecting permit has been awarded, with priority rights to apply for a subsequent four year exploration permit.

The Diodore permit extends over an area of 1,236 sq km in the relatively shallow (<100 meters) water depth of the southern Gulf of Gabes. The permit is surrounded on all sides by discovered and producing oil and gas fields.

NZOG CEO David Salisbury said it is a very productive region which will add diversity to NZOG's exploration portfolio through access to lower risk opportunities.

"Tunisia gives us diversity, by adding a lower risk/smaller reward core area to our portfolio. The exploration targets tend to be of moderate size - so do not generally attract the interest of the really big industry players - but the likelihood of striking oil is typically higher than what we experience in New Zealand."

The Prospecting Permit provides an exclusive right for two years, requires no well commitment, and gives NZOG a priority right to apply for an Exploration Permit but with no commitment to do so.

NZOG's work programme during the two year Prospecting Permit period is focussed on processing and analysing existing data and acquiring 350km of new 2D seismic data. The cost commitment for NZOG is approximately US$3m.

Source: Datamonitor

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