Mid-year start for offshore well drilling

Westech Energy will probably begin drilling two petroleum exploration wells off the East Coast, including Hawkes Bay, in the middle of this year.

Denver-based spokesman Ed Davies said yesterday that Westech was talking to another oil exploration company, which was planning to drill off Taranaki, about sharing the cost of a vessel to do the work.

He hoped the charter of a vessel to undertake the work would be finalised soon. Plans to drill additional wells at Westech's Kauhauroa and Awatere fields near Wairoa have been held up by a resource consent.

Mr Davies said the company's proposals to set up a small gas-fired electricity generating plant at Wairoa, and construct a pipeline between Wairoa and Napier were on hold until the new wells at Wairoa were drilled.

The extra wells would help establish the size of the Wairoa gas discoveries.

- NZPA