On Thursday, ExxonMobil Corp. subsidiary ExxonMobil New Zealand Ltd. and Todd Energy informed that they have got a 12-month extension to arrive at a decision on drilling at a block situated on the southeastern tip of New Zealand's South Island.

ExxonMobil spokeswoman Rebecca Arnold told that now the companies must decide on drilling by Oct. 10, 2010.

The PEP 50117 permit which was awarded in July 2007 is situated in the Great South Basin, 100 km offshore, in which ExxonMobil is the operator with a 90% stake while Todd Energy owns the rest.

The companies said in a joint media release, "A change to permit conditions was sought to facilitate more effective exploration of the permit area."

They will now look for interest from other parties to farm-in to get sanction.

Arnold told that soon the companies will start the process.

As per the release, "A decision to drill a well in the permit area will be contingent on the outcome of discussions with parties interested in acquiring an equity position in the acreage."

In a different statement, Energy and Resources Minister Gerry Brownlee expressed that the move was helpful.

"We welcome ExxonMobil's and Todd Energy's decision to continue to explore for petroleum, and look forward to their decision in 12 months. The change in conditions now means the program is more consistent with other consortiums' work programs in the area," he said.