Waipukurau farm well strikes gas

HASTINGS - Indications of high-quality natural gas have been found on a central Hawke's Bay farm.

Indo-Pacific and Origin Energy said high-quality natural gas signs had been found in their Speedy-1 well, on a farm near Waipukurau.

However, they said it was too early to draw conclusions as to the commercial viability of the well, which is 10km from the Hawke's Bay natural gas pipeline.

Nearly three years ago Westech Energy made a commercial-sized gas discovered at Kauhauroa, near Wairoa in northern Hawke's Bay.

Indo-Pacific spokeswoman Jenni Lean said the high-quality hydrocarbon gases, normally associated with the presence of oil, were encountered at a depth of 870m, 130m short of the target drilling depth of 1000m.

Westech Energy will soon begin drilling wells on its Awatere and Kauhauroa gas fields.

The company is considering building a gas-fired power station at Wairoa and a 120km pipeline to Hawke's Bay to use the gas.

- NZPA