Todd embarks on $100m exploration programme

Todd Energy has started an oil and gas drilling programme costing $100 million over the next six months in what it says is its busiest exploration phase.

The drilling in Taranaki began at the beginning of August with the spudding in of the onshore Mangahewa 4 well, the first of a three-well campaign in its Mangahewa mining permit.

Todd is the country's biggest privately owned and operated energy company and says that if successful Mangahewa will provide additional reserves for planned projects such as an LPG extraction plant and additional power generation.

Managing director Richard Tweedie was "very optimistic" the drilling would "continue to add to New Zealand's impressive growth in domestic oil and gas production".

In another onshore project Todd will drill another new well at its Kapuni field next month. The well will improve the flow of gas from the field Todd half owns with Shell and extend its productive life.

Last month the Manaia-1 appraisal well targeting oil in the Manaia exploration permit next to the producing Maari oil field was spudded in.

An extended reach well drilled from the Maari platform into the Manaia structure will step out 6.8km and reach a total depth of 7.6km.

Todd Energy has a 16 per cent interest in these wells and the other partners include operator OMV with 69 per cent, Horizon Energy with 10 per cent and Cue Energy with 5 per cent.

And this year Todd will participate in the Hoki-1 exploration well using the semisubmersible rig the Kan Tan IV, 12km northwest of Cape Egmont. Todd Energy has a 18.75 per cent stake with other joint venture partners being operator AWE with 53.75 per cent, OMV 21.25 per cent and and New Zealand Oil & Gas 10 per cent.