Beach Energy Ltd announced on 19 December 2019 that it had reached an agreement with OMV to farm-in to exploration permit PEP 50119, located in the Great South Basin. Beach is to acquire 30% interest in the permit, in which Mitsui is also a joint venture partner. The deal is subject to various approvals, including that of the New Zealand Government and regulatory bodies.  Beach will acquire the 30% interest by funding 30% of the well â and associated operations â costs for the Tawhaki 1 well, which is planned for early 2020.  The well will target the Tawhaki oil prospect, which lies in the east of the permit area. The prospect is a basement drape structural trap, with reservoirs thought to be in the Cretaceous Kawau Sandstones. The operator has outlined potential target resources of 1 Bb oil.  Tawhaki is planned to be drilled in early 2020 as part of a wider OMV operated drilling programme. OMV was granted marine consent for the well, and others in the programme, as of 16 December 2019.  PEP 50119 covers an area of 16,760 sq km and was awarded on 11 July 2007. OMV has been a participant since the permit's award, but increased its interest in 2018 after Shell withdrew from its New Zealand acreage. Once the farm-out to Beach is complete, participants in the permit will become OMV (52.93% + Operator), Beach Energy Ltd (30%) and Mitsui E&P Australia Pty Ltd (17.07%).
New Zealand, PEP 50119