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.
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 is reviewing the results to further assess the potential of these shale targets. The Company also shot 70 km of 2D seismic across the Castlepoint and Ranui permits to pinpoint well locations, with the objective of drilling at least one exploration well on the Castlepoint permit in 2013.
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).