New Zealand Oil & Gas has expanded its presence in Indonesia, after winning a bid to explore a block in northern Sumatra.
The company is diversifying its efforts to find oil and gas outside New Zealand, identifying Tunisia and Indonesia as potentially lucrative areas.
NZOG will contribute half of a US$4 million three year work programme exploring the Bohorok block and corporate affairs manager Chris Roberts says there are several large oil and gas fields nearby.
"This is a large block in northern Sumatra, over 5000 square kilometres, it's in a good neighbourhood, there are some very large existing oil and gas fields to the north of the block, and it's a low cost entry that we've managed to get at the initial exploration stage."
The company has a 22.5% stake in the Kisaran permit in central Sumatra, where one well is planned to be drilled later this year and Mr Roberts says more studies are underway to seek out other fields.
New Zealand Oil & Gas shares rose 0.5 cents to 76.5 cents each.