NZOG starts drilling at Pateke-1

New Zealand Oil & Gas (NZOG) said today it had started drilling the Pateke-1 well, off Taranaki.

The company said it hopes to reach oil at around 3700m in about 16 days time.

Pateke, which is the third prospect to be drilled in NZOG's current programme, is around 4km north of the Amokura oil field.

After Pateke-1, the joint venture holders of the PEP38460 licence, plan to drill the Kiwi prospect, which is also approximately 4km from Amokura.

NZOG holds a 12.5 per cent stake in PEP38460 through subsidiary Stewart Petroleum Company Limited.

Other partners in the venture are New Zealand Overseas Petroleum Limited with 45 per cent, WM Petroleum Limited, a wholly owned subsidiary of Pan Pacific Petroleum NL, with 10 per cent, AWE New Zealand Pty 20 per cent and Mitsui E&P New Zealand Limited with 12.5 per cent.

NZOG shares were up 2 cents at 68 cents in mid-morning trading today, having traded between 30 cents and 77 cents over the past 12 months.

- NZPA