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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news