New Zealand Oil & Gas has revealed that its Operator has identified a potential additional appraisal opportunity in the Palm Valley Pacoota P3 formation, which may be integrated into the current PV-12 drilling programme.
The Joint Venture (JV) is currently considering activities to log the Pacoota P3 and any decisions regarding an addition to the appraisal targets are expected once the total depth of the current Palm Valley well has been reached.
Cost information received from the Operator has also confirmed increased costs have been incurred to date, due to factors such as increasing fuel & freight costs, increased cost of civil works and equipment costs, and delays in rig logistics.
CEO Andrew Jefferies adds that the company is being agile in evaluating the P3 opportunity and preserving the option to exploit it which could achieve significant cost efficiencies.
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