Octanex and its partners are poised to spud the Matuku-1 well in the Taranaki Basin, offshore New Zealand, that targets mean recoverable resource of 65 million barrels of oil.

Matuku-1 will test multiple potential target zones including the primary target Kapuni Group Farewell Formation F sandstone and secondary targets, Kapuni Group Kaimiro Formation D Sand (T20 sands) and Pakawau Group North Cape Formation.

In the event of success at Matuku-1, the most likely follow up well would be sited so as to explore the northern Matuku structure.

Octanex is being free carried for its 22.5% interest through drilling of the well by Austrian oil and gas company OMV (VIE:OMV), which farmed into a 65% stake in November 2012.

It had also sold a 12.5% stake in November 2012 to New Zealand Oil and Gas for $12.5 million.

Tags: Octanex N.L.