Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


TAG Oil announces four east coast North Island wells

TAG Oil announces four east coast North Island wells

By Pattrick Smellie

Feb. 1 (BusinessDesk) - TAG Oil has firmed up plans to start exploratory drilling for oil and gas in shale deposits on the east coast of the North Island, which it says could hold the equivalent of 14 billion barrels of oil.

All four wells will be drilled using "conventional vertical drilling techniques", the company said in a statement. A spokesman confirmed there was no hydraulic fracturing, or "fracking", planned for any of the four wells.

Drilling is scheduled for March or April this year.

However, it was possible two of 13 wells being drilled onshore in the Taranaki province over the next year could be fracked. Fracking is more commonly used when creating production wells rather than during exploration.

At this stage, no commercial oil and gas production has ever occurred in the Hawke's Bay and Gisborne regions, where Canada-based TAG held exploration acreage with a larger company, Apache Corp of Texas, before Apache pulled out of the east coast tenements early in the New Year.

TAG will fund the wells using a one-off payment Apache made to honour its commitments to the development plan it had agreed with TAG before deciding to focus its activities in other parts of the world.

The exploration wells will test "several high-impact play Whangai source rocks" which had been independently confirmed as oil-bearing.

"These naturally fractured, high-quality source rocks are believed to be widespread across TAG's acreage," said chief executive Garth Johnson. "Independent assessments have concluded that there are approximately 14 billion barrels of undiscovered original oil in place potential, within less than a fifth of TAG's total land holdings on the east coast."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news