New Zealand Oil & Gas Limited announced that it has executed a binding Farm Out Agreement (FOA) with Triangle Energy (Global) Ltd. (Triangle) to acquire a 25% participating interest in the L7 Production License (L7) and the EP 437 Exploration Permit (EP 437) (together, the Permits). NZO has completed all confirmatory due diligence, to its satisfaction and will proceed with the deal, including paying a 50% share of the Bookara 3D seismic costs totaling A $1.9 million (subject to customary regulatory approvals including DMIRS and FIRB). The exploration wells will target the highly prospective Early Permian-aged reservoirs identified by the Bookara 3D seismic survey, which are analogous to recent discoveries in adjacent permits, including Lockyer Deep, Waitsia, West Erregulla and South Erregulla.

The cost of all existing rehabilitation and restoration obligations for L7 and EP 437 are to be borne exclusively by Triangle. After completion the Permits' joint ventures will comprise Triangle (50% and Operator); NZO (25%) and, subject to completion of their own farm out agreement, Talon Energy Ltd.