PEP 55794 Relinquishment

New Zealand Oil & Gas have applied to relinquish Petroleum Exploration Permit 55794 (Toroa) which contains the Kaipatiki prospect. "PEP 55794 is the last of our New Zealand exploration permits. The same confluence of events that led us to relinquish our Clipper permit: adverse regulatory settings for offshore exploration; the dry hole at OMV's Tawhaki permit; the recent announcement terminating Wherry-1 drilling; and the effects of COVID on drill rig costs and availability have caught the Toroa permit in the same perfect storm. We have exhausted all avenues to find a potential partner to progress drilling this acreage and so reluctantly relinquish," says Chief executive Andrew Jefferies. "Over the years we have developed many relationships with the South Island community and Iwi. I am disappointed that we were unable to deliver an outcome that would have economically benefited the people of Otago and Southland, discovering the North Sea of the South." "We remain active in New Zealand at the Kupe gas field in Taranaki and look forward to the start up of our compression project there late this year. At a time of low hydro levels and tight gas supply in New Zealand Kupe is a standout performer, reducing coal consumption, cooking our excellent South Island Salmon, and helping renewables keep the lights on." For further information please contact the Company on: email enquiries@nzog.com phone +64 4 495 2424 End CA:00368875 For:NZO Type:MKTUPDTE Time:2021-03-10 09:25:56