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NZOG finds more oil and gas in Kupe

NZ NewswireNZ Newswire 20/04/2016 Paul McBeth

The Kupe platform off the Taranaki coast. © 3 News The Kupe platform off the Taranaki coast. New Zealand Oil & Gas has upgraded the developed reserves at the Kupe field off the Taranaki coast and is still looking at ways to expand untapped reserves in the project.

The gas and light oil field's developed reserve was lifted to 6.02 million barrels of oil from 5.22 million barrels and NZOG estimates there's likely to be an extra 3.6 petajoules of gas and 16.69 kilotonnes of LPG, the company said on Thursday.

The joint venture partners in Kupe are also looking at ways to develop undeveloped reserves but haven't made a final decision on whether to proceed.

"This reserve increase provides additional volume from within the existing development," chief executive Andrew Knight said.

"It also provides further security that contracted volumes can be met without needing significant additional capital."

Wellington-based NZOG has a 15 per cent interest in Kupe, sitting alongside Origin Energy with 50 per cent, Genesis Energy with 31 per cent and Mitsui at 4 per cent.

NZOG's share of the undeveloped reserve would be 3.2 million barrels if the investment went ahead, it said.

The company has responded to a slump in global oil prices by reducing exploration spending, quitting its secondary ASX listing, and lowering directors' fees by not replacing former chair Peter Griffiths.

The shares last traded at 48.5 cents, and have gained 14 per cent this year.

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