12 Dec 2011

NZ company to begin oil drilling in Indonesia

7:04 pm on 12 December 2011

New Zealand Oil & Gas will start drilling for oil in Indonesia next year, after acquiring exploration rights.

The listed company has acquired a 90% stake in a company which holds an exploration interest in the South East Asian country.

Its spokesperson Chris Roberts says in return for the shareholding, New Zealand Oil & Gas will fund the $US7 million drilling.

Mr Roberts says the agreement, which is commercially sensitive, is part of a carefully thought out plan to explore in South East Asia.

He says there is no certainty the drilling will find anything, but the company believes the prospects are promising.

Mr Roberts says the company will be able to release more information about its agreement to explore in Indonesia in January.