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

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news