Apache has agreed to spend up to $100 million on a multi-phase exploration, appraisal and potential development programme within Tag Oil’s east coast basin permits PEP 38348, PEP 38349 and PEP 50940.
A 2D seismic programme within the permits has been completed.
The Apache-Tag venture is continuing “an extensive consultation process relating to the upcoming drilling of four vertical wells targeting the Whangai and Waipawa source rocks”, said Tag.
The partners hope to soon receive regulatory consents, so well-site construction can start in the first quarter of 2013, followed by drilling operations.