MEO Australia Ltd. said it brought on a new joint venture partner for New Zealand reserves that's already focused the bulk of its spending plans on the country.

MEO said Canadian energy company TAQ Oil Ltd. purchased a 70 percent stake in an exploration site in New Zealand's Taranaki basin that was up for sale. MEO said the permit area was a low-cost opportunity with a potential for high returns.

"Having an operator with TAG's established local footprint offers the potential for significant operational synergies, helping to ensure that the hydrocarbon potential of the permit can be unlocked in an efficient and cost-effective manner," CEO Peter Stickland said in a statement.

TAQ in April outlined plans to spend about $5.8 million for the year. At a time when oil prices are still about 50 percent less than they were two years ago, the company said it was formulating a conservative plan to balance its books. The spending plan for the year, it said, was focused on low-cost opportunities like New Zealand's.

From the Taranaki basin, the company said it expects to bring in about $16 million from the production of about 1,200 barrels of oil equivalent per day, of which 80 percent would be in the form of oil.

Oil is the fourth-largest export for New Zealand, bringing in around $700 million each year in royalties and taxes. The government said there are around 149 million barrels of oil reserves remaining in fields already in production

Data surveys of the permit area in question are slated for March 2017. Drilling is scheduled for February 2018.