Taranaki oil wells declining

Production by Canadian-based oil company New Zealand Energy Corp has fallen in the past year as the amount of oil from some Taranaki wells declines.

The company said it produced 19,682 barrels during the three months to the end of March, down from 30,179 barrelsin three months to the end of March 2013, but up from 16,790 in the December 2013 quarter.

Total oil sales during the latest quarter were C$2.1 million (NZ$2.3m), down from C$3.1 million a year ago.

"Reduced production compared to the same period in 2013 is the result of production declines in the Copper Moki wells, which is to be anticipated in oil wells," the company said. "Production from the Copper Moki wells has since stabilised."

NZEC has about 773,000 hectares of conventional and unconventional prospects in the Taranaki and East Coast basins.

Production costs related to oil sales in the March 2014 quarter were C$780,115 or C$44.25 per barrel, down from C$62.08 a year earlier. The lower costs resulted from cost efficiencies due to the installation of production facilities on the Copper Moki site, NZEC said.