A company owned by the Gloriavale Christian Community, on the West Coast, expects to drill a new oil well this spring with a rig that has recently arrived from Korea.
Ocean Harvest International Limited (OHIL), is planning the new well on the Niagara structure near Greymouth.
Gloriavale's geological consultant, Dr Murry Cave, said oil had been discovered there in the past but the well was close to oil-water contact so could not be put into production.
OHIL had since evaluated its permit and commissioned the manufacture of a new purpose-built rig in Korea.
The rig had recently arrived on the Coast and was undergoing testing.