Castlepoint covers 2,231 square km (551,045 acres) and is held at a 100% working interest. The area offsets prospects identified by competitors, and numerous oil and natural gas seeps appear on the permit lands. The Castlepoint permit offers strong long-term potential, as it is estimated to contain unconventional resources of 6,743 million barrels OOIP and best estimate recoverable resources of 154.1 million barrels (2% recovery rate), and conventional resources of 586.3 million barrels OOIP and best estimate recoverable resources of 54.5 million barrels (9% recovery rate).
As part of its five-year work program, NZEC drilled two stratigraphic wells on the Castlepoint permit to collect core from the Waipawa and Whangai shales, and also shot 70 km of 2D seismic across Castlepoint and an offsetting permit. NZEC used information from the stratigraphic test holes and the seismic survey to focus its Castlepoint exploration plans. The Company has identified its preferred drill location and has initiated the community engagement and technical assessments required to obtain land access consents and permits, with the objective of drilling an exploration well on the Castlepoint permit in 2014.
NZEC is actively looking for a farm-in partner to fund exploration of Castlepoint and NZEC's other East Coast permits.