Loudon moves on oil licences

Last updated 07:11 01/08/2013

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L&M Energy is spending C$18.25 million (NZ$22m) to take a half share of the Tariki, Waihapa and Ngaere TWN licences in Taranaki, in a deal with New Zealand Energy Corp.

L&M Energy was recently taken private by its chairman Geoff Loudon in a takeover by his company, New Dawn Energy.

Last month Canada-based NZEC said it was paying Origin Energy C$33.5m for the three TWN oil and gas licences in Taranaki with reserves of more than two million barrels.

New Zealand Energy Corp aimed to breathe new life into three oil and gas licences in Taranaki, part of the "Tawn" licences that have been dormant for the past year.

The deal included the Waihapa oil and gas production station, but the price was C$8.5m less than a deal first announced last year.

NZEC said it was still looking at options to fund the balance of C$12m needed to pay Origin for the TWN licences and to add extra working capital.

Loudon said the TWN licences and infrastructure held "great potential" for exploration and business opportunities in the Waihapa production station. Fairfax NZ

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- Taranaki Daily News

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