ExxonMobil, Todd Energy Secure Crown Minerals Approval To Defer Drilling Date For Great South Basin Permit

Published: 08-Oct-2009

Exxon Mobil Corporation (Exxon Mobil) and Todd Energy have secured approval from Crown Minerals to change the work conditions for Permit 50117 in Great South basin. Crown Minerals has agreed to an application from ExxonMobil and Todd Energy consortium to defer the date for deciding whether to make a commitment to drilling or not by 12 months (to October 10, 2010). The date by which a well has to be drilled also moves out a year to October 10, 2011.

In July 2007, Crown Minerals awarded the ExxonMobil and Todd Energy consortium a petroleum exploration permit for the frontier region.

"This was not an unusual application. Such applications are completely normal practice and to be anticipated for regions that carry a high level of risk," said New Zealand's Energy and Resources Minister, Gerry Brownlee.

The ability for permit holders to make changes to their work programme conditions is set out in the Minerals Programme for Petroleum, which is governed by the Crown Minerals Act.

"The original programme set down by the ExxonMobil/Todd Energy consortium was particularly aggressive for a frontier region such as the Great South basin. Obviously there is more work that needs to be done before a commitment to drilling can be made," said Brownlee.

"This coming summer will be a busy one for petroleum exploration. The Kan Tan IV will be drilling for AWE in Taranaki this summer, and Crown Minerals is preparing to acquire new seismic data for the government over the summer season. I will be making further announcements on this shortly."

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