ANDY JACKSON / STUFF
Tag Oil Ltd Cheal A production site is one of the six wells that are sold to Tamarind Resources
The acquisition of $ 30 million ($ 44 million) from Tamarind Resources of New Zealand's TAG Oil assets will provide an opportunity for "further exploiting the company's existing capabilities in New Zealand," said Country Director Jason Peacock.
The Malaysian company with its pleasure is added to the existing New Zealand portfolio, which is currently focused on the high seas, Peacock said.
Tamarind are currently taking part in maritime discharge licenses held in New Plymouth to drill wells in the Tui field in the Taranaki basin.
Consent was aimed at extracting up to four of the five existing shafts in the Tui sector, as well as its consent to the disposal of hazardous materials from the semi-submersible drilling rig during the drilling process.
The hearings began on 6 November and are expected to continue in a second week.
The company specializes in expanding oil productivity.
READ MORE: Tamarind Resources seeks the consent of Taranaki Bight
The sale included six wells in Canada-based Taran Oil, including Cheal and Cardiff, Sidewinder, Supplejack, Puka and Waitoriki, and a 70 percent stake in Cheal East's TAG Oil wells, Tamarind said.
The wells currently produce 1370 barrels of oil a day, which Tamarind planned to further develop and increase production.
The sale is expected to be completed in early 2019.
TAG Oil CEO Toby Pierce said the company was pleased to announce the transaction for TAG's assets in New Zealand.
"The sale presents an attractive premium on the current market value of TAG shareholders' assets," Pierce said on the company's website.
The company will keep a small share of the profits from the New Zealand wells as well as bonus payments if the goals are met.
The sale will allow TAG Oil to develop exploration prospects for Australian licenses in the Surat basin.
New legislation that stops offshore exploration in New Zealand has influenced the company to sell, said Chris Beltgens, Vice President of TAG Oil Development Company, New Zealand Herald.
TAG has been operating in New Zealand since 2002.