Court case over Great South Basin exploration rights

A hearing to decide who has exploration rights to a potentially gas and oil-rich area off the bottom of the South Island is underway in the High Court at Wellington.

An exploration permit to an area in the Great South Basin was held by industry minnow Bounty Oil but Government agency Crown Minerals has revoked the permit, The Dominion Post reported.

Crown Minerals wants to offer other blocks in the area for international tender.

Bounty is appealing against the revocation in the High Court .

In a sworn statement read to the court, Bounty managing director Tom Fontaine considered the basin had reserves with a gross value of US$800 billion ($1285 billion).

Meanwhile, Exxon and Crown Minerals are to face off in court later. Exxon is seeking a declaration from the High Court that it does not have to give secret seismic data that it bought relating to Bounty's permit area, to Crown Minerals.

- NZPA