Trans-Orient to drill for oil

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Oil exploration company Trans-Orient is planning to drill three shallow test wells in the Waitangi Hill area to the north of Gisborne.

The first of the wells will be drilled this summer, with two more next summer, once the data from the first well is analysed, the Gisborne Herald reported.

Trans-Orient's New Zealand manager Carlos Kazianis said the aim of the wells was to acquire information at relatively low cost.

The Vancouver-based company was taking exploration in the area one step at a time.

Meanwhile, Trans-Orient and another Vancouver-based company TAG Oil have agreed to combine their businesses.

Under the deal Trans-Orient will become a controlled subsidiary of TAG, which holds interests in oil and gas exploration permits in the Taranaki Basin and owns the mining permit which includes the Cheal oil discovery in Taranaki.

NZPA