TAG Oil has made the decision to plug and abandon their Ngapaeruru-1 well, east of Dannevirke and reinstate the land back to agricultural use.
"We will mobilise our equipment to the well site as from Monday, September 5 and will have a number of heavy vehicles, the equivalent to livestock truck and trailers, at the site," Rodney Hosking, TAG Oil's land liaison adviser said.
Plugging the well will involve putting cement down the hole to permanently seal it, with the work expected to take two or three days.
TAG Oil began drilling their exploratory well at Ngapaeruru in April 2013 targeting petroleum-rich rock formations at about 1800m.
However, despite the well encountering high shale gas readings with indications of moveable hydrocarbons, Mr Hosking said the company has decided to abandon the well because of the economic climate.