Petroleum exploration to begin off Taranaki

The first-ever petroleum exploration permit for the Outer Taranaki Basin area has been awarded.

Colorado-based Global Resources is to acquire 3100km of new 2D seismic data along with associated geo-technical studies in its 55,800km permit area, covering most of the outer basin.

It is also to start drilling an exploration well within 42 months, Associate Energy Minister Harry Duynhoven said today.

Little exploration had been carried out in the basin, and the results of Global's programme were expected to provide a better understanding of the area.

The exploration programme was particularly exciting because if the initial stages of exploration met expectations, there was a real prospect of the Outer Taranaki Basin having its first well drilled, Mr Duynhoven said.

The Outer Taranaki Basin is considered to have similarities to Gippsland Basin off southeast Australia, one of Australia's major petroleum producing basins.

It also has similarities to the Great South Basin, which has been attracting attention lately, and which was probably contiguous with the Taranaki Basin when the basin was being formed.

Mr Duynhoven said much of the ongoing interest in petroleum exploration in New Zealand was due to increasing awareness of the potential here.

That was particularly as a result of a data acquisition programme the Government established in 2004, he said.

While it was too early to speculate on what any frontier basin might produce, the programme of acquiring and promoting information about this country's petroleum basins was continuing to deliver international interest in exploring.

Global Resources is new to exploration in New Zealand, having previously promoted and developed deepwater exploration blocks in Africa.

- NZPA