(MENAFN - ProactiveInvestors - Australia) Octanex (ASX:OXX) has secured commitment from OMV New Zealand to drill the Matuku prospect in offshore Taranaki Basin, New Zealand.
Under the agreement, Octanex will be free carried through the site survey and the Matuku-1 drilling program.
Currently negotiations are underway to secure a drilling rig, with drilling likely to commence in the third/fourth quarter of next year, while a well site survey is likely over the next couple of months.
Drilling of the Matuku-1 well is part of OMV's multi-well drilling plan, scheduled to start in the third quarter of next year.
The confirmation of drilling in the Matuku prospect is part of the farm-in agreement between Octanex and OMV, under which the latter had to commit to a drilling plan in the exploration tenement or forfeit its 65% participating interest.
The farm-in also required OMV to shoot and process a new 3D seismic survey over the Matuku prospect within the tenement, which was completed earlier this year.
The results of the survey confirm the validity of the Matuku structure, and if the exploration drilling yields positive outcome, OMV estimates the mean recoverable resource for the prospect to be around 65 million barrels.
Both companies also jointly own exploration rights to the adjoining permit.
In addition, Octanex also has 100% participating interest in two other exploration blocks.