AWE Limited (ASX: AWE), is pleased to announce that it has completed the purchase of an additional 15% interest in the Tui area oil project and an additional 6.25% in the Oi exploration well, located offshore New Zealand in PMP 38158, from Mitsui E&P Australia Pty Limited. AWE is the Operator of the PMP 38158 joint venture.
Further to the company's ASX release dated 3 October 2013, AWE purchased the additional interest in Tui and Oi for a consideration of USD6.4 million. The transfer of interest has been approved by the New Zealand Minister of Energy and Resources and the effective date of the transaction is 1 October 2013.
Following completion of the purchase, AWE now holds a 57.5% interest in Tui area oil project and a 31.25% interest in the Oi exploration well. AWE has the option to increase its equity in Oi up to 57.5% in any development through a buy-back of equity from Pan Pacific Petroleum.
Managing Director of AWE, Bruce Clement, said that the purchase of an additional interest in Tui and Oi was a good example of how the company is maximising near-field opportunities and delivering on its strategy.
"The Tui area oil project has been a fantastic performer for AWE over the years and we believe the project holds significant remaining value. As the Operator, we are very comfortable increasing our interest to 57.5% and we are looking forward to the drilling program that is scheduled to commence in the early part of 2014.
"We plan to drill both the Pateke-4H development well and the Oi exploration well in early 2014. If successful, these opportunities will add further production upside and add substantial value to the Tui project," Clement said.
