Apache Corporation Exits Exploration Plans in New Zealand's East Coast Basin

---

Researched by Industrial Info Resources Australia (Perth, Australia)--Plans to boost oil and gas exploration in New Zealand have slowed with news that Apache Corporation (NYSE:APA) (Houston, Texas) is pulling out of a huge East Coast project in New Zealand's North Island.

Apache and TAG Oil Limited (TSX:TAO) (Vancouver, Canada) teamed up to search for oil and gas in the East Coast Basin in 2011. TAG Oil entered into a farmout agreement with Apache to explore and potentially develop oil and natural gas resources. Permits for the plans comprise more than 4,000 square kilometres of potential onshore oil and gas opportunities, and Apache and Tag Oil are under way with plans to conduct a multi-phased exploration and potential development program.

Apache has announced its decision to withdraw from the project, but will continue to fund Phase I of the project at an estimated cost of $120 million. Under the farmout agreement, Apache is obligated to pay all costs and expenses associated with the Phase I program. TAG Oil intends to continue and complete Phase I, but will not commit to continuing with Phase II until the first phase is completed. Phase I involves the drilling of four exploratory wells, and the results will determine support for additional work and investment.

TAG Oil Limited is a Canadian-based production and exploration company with operations focused exclusively in New Zealand. TAG Oil has full ownership of all its core assets, including oil and gas production infrastructure, and is continuing with the development of several oil and gas discoveries.

Apache has many opportunities across its global portfolio and the decision was about priorities for capital expenditures. In December, oil company Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil) also withdrew from exploration off the East Cape. Both projects were subject to intense opposition from environmental groups and local residents.

Industrial Info is currently 70 projects in New Zealand, predominantly across the Power, Metals & Minerals, and Petroleum Refining industries. The projects are in varying stages of development and, if they proceed to construction, will total an investment value of more than $10 billion.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.