Tag starts oil drilling in Taranaki basin

Canadian gas and oil exploration company Tag Oil has started drilling the Arakamu-1 oil well in the Taranaki Basin.

The Arakamu-1 oil well, formerly known as the Eltham-1, will be drilled to a measured depth of 2387m over the next two weeks.

Tag said it anticipated drilling four wells in the Taranaki Basin and one in the Canterbury Basin over the next 12 months, as well as testing the Supplejack wells in Pep's 38741 and 38765 licences.

Tag chief executive Drew Cadenhead said New Zealand was under-explored compared with most other notable gas-producing regions of the world.

"The high percentage of large discoveries resulting from the few wells that have been drilled confirm that there is plenty of potential," he said.

Tag has exploration permits totalling 4,052,891 gross acres, making it one of the largest holders of prospective acreage in New Zealand.

- NZPA