By Rebecca Howard
Oct. 26 (BusinessDesk) - New Zealand Oil & Gas shares rose 6.9 percent after it reported gas indications at the Kohatukai-1 onshore exploration well south-east of New Plymouth.
NZOG and its partners started drilling in September to test the Matapo and Mangahewa sands that deliver gas in the Pohokura, Turangi and Mangahewa fields north-east of the city.
The well has intersected the secondary objective Matapo Sandstone at a depth of 3,602 metres and "elevated mud gas readings indicating the presence of gas were observed," NZOG said in a release. The rig will continue to drill ahead to the planned total depth and a logging programme will then be carried out. NZOG previously indicated it may drill to 3,800 metres.
The Wellington-based explorer has a 25 percent stake in the permit, as does its parent company Ofer Global Group. Operator AWE owns 12.5 percent, with the balance held by its parent company, Mitsui E&P Australia.
NZOG shares last traded at 62 cents and have fallen 17 percent so far this year.