Canadian oil company Apache has been talking up the prospects for onshore oil finds on the East Coast of the North Island in a series of meetings where executives have also discussed how they would ensure hydraulic fracturing doesn't pollute local water supplies.
Apache is planning to drill four onshore wells, two near Gisborne and two near Dannevirke, as the first step in a joint exploration programme with TAG Oil, also from Canada, which has begun commercial oil and gas production onshore Taranaki, using so-called "fracking" technology extensively.
A report of the visit by Apache and TAG executives to the East Coast is reported in the New Zealand Petroleum and Minerals section of the Ministry of Economic Development's website.
"We think it will be a substantial prize," said Apache's global unconventional exploration manager Craig Rice of the potential for oil and gas finds from geological formations that are likely to require fracking to unlock hydrocarbons.
The MED report says Apache is "taking particular care liaising with affected East Coast parties, from landowners and Maori to regional and district authorities, about proposed seismic and drilling programmes, including isolating groundwater supplies from drilling activities and the safe disposal of drilling or any hydraulic fracturing fluids."