Octanex Enters Farmout Deal with OMV NZ for PEP 51906 Permit, Offshore New Zealand

Octanex N.L  announces that the farmout agreement made with OMV New Zealand Limited (“OMV NZ”), in relation to the PEP 51906 permit, has received the consent of the  New Zealand Minister of Energy under the Crown Minerals Act.

As a result, the farmout agreement is now unconditional. OMV NZ entered into the farmout agreement with a wholly-owned subsidiary of Octanex, Octanex NZ Limited (“Octanex NZ”), in respect of the 100% interest in the PEP 51906 permit (“Permit”) then held by Octanex NZ. The Permit is located in the offshore Taranaki Basin of New Zealand

MATUKU 3D SEISMIC SURVEY

Part of the farmout agreement terms is that OMV NZ will acquire (and pay for 100% of the acquisition, processing, mapping and interpretation costs) a new 3D seismic programme within the Permit surrounding the Matuku Prospect. OMV NZ has confirmed that it expects to commence acquisition of the 270 km2 Matuku 3D seismic survey within the next 24 hours. The survey will be carried out by Reflect Geophysical Pte Ltd {“Reflect”) and be conducted by the seismic acquisition vessel Orient Explorer. The survey will take approximately 35 days to complete.

OMV NZ has substantial existing New Zealand permit interests, including being the operator of the Maari oil field (PMP 38160) that is located to the immediate south of PEP 51906 and in which it holds a 69 percent interest. OMV NZ also holds a 10 percent interest in the Maui gas/condensate field (PML 381012) and a 26 percent interest in the Pohokura gas/condensate field. All of these permits are located in the offshore Taranaki Basin.

Octanex is confident OMV NZ will bring to bear a considerable amount of exploration and operational experience, knowledge and expertise regarding the hydrocarbon potential within PEP 51906. Octanex considers the Permit to have the potential to contain a number of discrete oil accumulations and the Company is therefore delighted to have secured a Joint Venturer and Operator of the substance and experience of OMV NZ in relation to the ongoing exploration of PEP 51906.

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Source: Octanex, May 10, 2011;