Origin Energy (ORG) and Contact Energy are set to acquire New Zealand's Swift Energy Oil and Gas Assets for approximately NZ$115 million.
The Swift Energy assets include their two main producing areas in the onshore Taranaki Basin.
Under a separate arrangement between Contact Energy and Origin Energy, Contact Energy will contribute approximately NZ$54 million to the total purchase price for the right to own and develop the Ahuroa field as an underground gas storage facility purchase the remaining gas and LPG reserves in the Ahuroa reservoir.
Origin Energy managing director said the assets will provide immediate production and earnings.
"The TAWN and Rimu/Kauri/Manutahi assets are an attractive mix of mature producing fields with prospects for in-fill drilling and potential oil and gas upside," he said.
Origin is an energy provider, providing gas and electricity across Australia, New Zealand and the Pacific. It is also involved in gas and oil exploration and production.
Origin supplies natural gas and electricity in New Zealand through Contact Energy, in which it holds 51.4% controlling interest.
Contact Energy owns and operates 10 power stations in NZ.
Origin said the transaction is expected to be complete in the first quarter of 2008 and is conditional on the consent of the Overseas Investment Office.
Shares in ORG dropped 2 cents to $8.52 at 12.54pm AEST.
