Zeta in Pan Pacific US$22.5 million bid

Zeta Energy is offering up US$22.5 million for an unconditional takeover offer for Pan Pacific Petroleum NL (PPP).

Map from PPP.

The offer equals to $0.04 (A$.05) per share and will be made as an on-market cash offer.

Zeta already owns 16.8% of Pan Pacific. 

PPP is advising shareholders to take no action in response to the offer until the PPP board has had an opportunity to consider the offer and provide its formal recommendation.

The PPP board will meet to consider Zeta Energy’s offer.

PPP participates in non-operated interests in New Zealand, Australia and Vietnam.

New Zealand

PPP claims that its main asset is the 15% interest, through its wholly owned subsidiary W M Petroleum, in the AWE-operated Tui area oil fields.

Tui is located in PMP 38158, in the Taranaki basin, about 50km off of New Zealand's North Island and northwest of the Maui Gas field. It consists of three fields: Tui, Amokura, and Pateke,which produce from four horizontal wells, flowing to the permanently moored Umuroa FPSO. As of 31 September, the Tui fields had produced 36.4 MMbbl with production averaging about 3250 b/d gross. 

Australia operations. From PPP.

In March, AWE began the Pateke-4H subsea tieback and installation project that involves the installation and commissioning of subsea pipelines, manifolds and ancillary support equipment, in water depths of about 124m, to connect the Pateke-4H development well to the Tui field gathering system.

The subsea tieback and installation project will coincide with a two week planned shut down of the FPSO Umuroafor inspection and maintenance activity. First production from Pateke-4H is expected in April.

AWE is the operator of PMP 38158 with 57.5% interest. Partners include New Zealand Oil & Gas (27.5%) and Pan Pacific Petroleum (15%).

Australia

Through wholly owned subsidiary Pan Pacific Petroleum (JPDA 06-103) Pty, PPP owns 15% interest in the Oilex-operated Timor Leste-Australia joint petroleum development area. 

JPDA 06-103 is located within the northern Bonaparte basin, offshore northwest Australia. The area is next to several existing oil fields, including Laminaria, Corallina, and the Kitan development.

Other partners include Global Energy (20%), GSPC (JPDA) (20%), Bharat PetroResources JPDA (20%), and Japan Energy E&P JPDA Pty (15%).

Vietnam

PPPV team. From PPPV.

PPP, through its wholly owned subsidiary Pan Pacific Petroleum (Vietnam) Pty (PPPV), owns 5% interest of Block 07/03 in the Nam Con Son basin and 15% of Block 121 in the Phu Khan basin, offshore Vietnam.

Block 07/03 covers 3932sq km and is adjacent to Block 12W, that contains the Premier Oil-operated Chim Sao and Dua oil field developments, in addition to the BP-operated Lan Tay and Lan Do fields in Block 06-1 to the north, in which gas was discovered. These gas fields have been developed as part of the Nam Con Son gas project, an integrated gas-to-power project that delivers natural gas supplies from the offshore fields using a 370km subsea pipeline. The main objective in Block 07/03 is oil in Miocene sandstone reservoirs in fault traps.

Talisman, the operator, estimates a gross 2C Contingent resource of 67 MMboe.

Talisman holds 55% interest through subsidiaries Premier Oil Vietnam South (30%) and Vamex (25%). Partners in the Block include PearlOil (Ophiolite) (25%),  PetroVietnam (15%) and PPPV (5%).

Origin-operated Block 121 covers an area of about 6000sq km and is located over the northern portion of the Phu Khanh basin that includes the southern extension of the Triton Horst. PPPV says that the area relatively underexplored, but is a potentially attractive area and has the possibility to contain both oil and gas.

PPP says that the interest in Block 121 is under consideration for sale.

Origin holds 45% interest with partners Premier (40%) and PPV (15%).