New Zealand Oil & Gas has agreed to acquire interests in three offshore Taranaki permits from ASX listed company Octanex NL.

The agreement includes Permit 51906, where the prospect known as 'Matuku' is expected to be drilled in the second half of next year.

For NZOG it's the third significant step up in exploration activity off Taranaki announced in recent weeks. It follows confirmation of an intention to drill the Kakapo prospect and drilling commitment and farm-out of its Kaheru prospect - both Kakapo and Kaheru are off the South Taranaki coast.

In the new agreement, NZOG will pay US$12.5 million for a 12.5 per cent interest in Petroleum Exploration Permit 51906 (Matuku). Octanex will retain 22.5 per cent, and the operator, OMV, has 65 per cent.

Tags: New Zealand Oil and Gas Ltd