New Zealand Oil & Gas Ltd (ASX:NZO, OTC:NZEOF) has completed its farm into a 25% participation interest in Western Australian onshore Production License L7 and adjacent Exploration Permit EP 437 following the receipt of the required regulatory approvals. The joint venture comprises Triangle Energy (Global) Ltd (ASX:TEG) (50% and operator); NZO (25%) and Talon Energy Ltd (ASX:TPD) (25%).
The companies are planning to drill the exploration wells in 2024.
Talon believes they could be sitting on a material gas opportunity at L7 thanks to 3-4 high-graded gas prospects for two drill slots in 2024.
The Booth, Huntswell Deep and Mountain Bridge South prospects neighbour the Dampier-Bunbury Natural Gas Pipeline — a crucial energy source for several mining and resources hubs.
Talon, Triangle and NZO will continue to hold the magnifying glass to the L7 and the EP437 permit.
Read: Triangle Energy and JV partner Athena win permit to develop Cragganmore gas field in the UK
Meanwhile in the UK, Triangle and its 50-50 joint venture partner Athena Exploration Ltd have been offered five blocks in the West of Shetlands gas province which contains the Cragganmore gas field.
The acreage is part of the first tranche of awards by the North Sea Transition Authority (NSTA) in the 33rd UK Licensing Round and is adjacent to the Tobermory and Bunnehaven gas fields offered to British energy giant Shell (LON:RDSa).
Athena, the operator of the gas field, has estimated a best-case resource of 527 billion cubic feet (Bcf) of recoverable gas for Cragganmore, from a low estimate of 273 Bcf to a high estimate of 1,022 Bcf.