Widespread – which listed on the New Zealand Alternative Market (NZAX) of the New Zealand bourse last November – announced its Green Gate purchase, for an undisclosed sum, late last week.
“This was exactly what we were looking for,” Widespread director Chris Castle told PetroleumNews.net.
“It was something we could afford and I was not put off by the looming litigation between Green Gate and TAG,” said Castle, referring to the likely High Court fight between Canadian-listed junior TAG Oil and Green Gate over Kate-1.
Earlier this year, TAG’s South Island exploration plans were thrown into disarray when Green Gate cancelled an agreement under which TAG would earn up to 70% interest in licence PEP 38260 and revoked TAG’s authority to explore in the permit.
TAG denied it was in default of its obligations and said it would be seeking substantial damages from Green Gate.
But Castle said it appeared TAG had neither performed adequately nor met deadlines, so he was comfortable taking equity in Green Gate.
Castle said Green Gate was at an advanced stage of preparing to drill Kate-1 into an anticline oil prospect near Amberley, North Canterbury.
Green Gate had also recently fulfilled its 2007 work obligations in another Canterbury licence, PEP 38263, through the successful acquisition of over 200km of marine seismic data (offshore North Canterbury), and was on track with its work program in its PEP 38253 block in the inland northwest South Island, according to Castle.
Castle also said Widespread aimed to further investigate the Kotuku Dome, a substantial anticlinal structure characterised by sustained surface oil seeps.
The dome is in the Arnold River valley north in PEP 38526, inland from Greymouth on the West Coast of the South Island.
New Zealand Oil and Gas conducted the most comprehensive modern Kotuku campaign during the 1980s, including some seismic surveys and unsuccessful well drilling.
Castle said with current strong oil prices, improved technology and infrastructure, and new geological concepts developed by GeoSphere, the Kotuku exploration permit would provide “a promising cornerstone asset” for Widespread.
Future possible investments included several other New Zealand-based onshore, niche oil and gas prospects and developments.
Castle also said during the past year, Widespread had invested in Canada Energy Partners, a private Canadian-based coal seam methane company, and privately owned Fijian oil explorer Akura.
Wellington-based energy company GeoSphere acts as advisor to Widespread and holds a minority stake (about 5.39%) in the company. Private equity company Tasman Portfolio holds a 14.39% interest.
