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

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news