AWE Limited has entered into a farmout agreement for New Zealand exploration permit PEP55768 (AWE 51%, Operator), onshore Taranaki basin, which includes the planned Kohatukai-1 well. PEP55768 is located southeast of New Plymouth in a prolific gas producing region and contains a number of substantial prospects.

The current joint venture partners in PEP55768 are AWE, with a 51% operating interest, and Mitsui E&P Australia (Mitsui), with a 49% interest. The agreement will see the joint venture farm down a combined 50% working interest to New Zealand Oil & Gas and its majority shareholder, O.G. Oil & Gas (Singapore) Pte. Ltd. Each incoming company will acquire a 25% working interest in the permit. At completion of the farmout, AWE will remain as Operator with a 12.5% interest and Mitsui will retain a 37.5% interest.

The effective date is 1 March 2018 and completion is expected by the end of May 2018, subject to regulatory approvals.