Oil strike in Taranaki Basin

18:41, Nov 28 2012

The Taranaki-focused oil explorer New Zealand Energy has announced its fifth oil discovery.

The company, listed on the Toronto Stock Exchange, said the onshore Waitapu-2 well had hit oil in the Mt Messenger Formation in the Taranaki Basin, and it was flowing at 325 barrels of oil and 800,000 cubic feet of natural gas a day. While the oil was currently being trucked to the Shell-operated Omata Tank Farm, 45 kilometres to the north, the company planned to shut in the well soon to test pressure buildup.

That would help it determine whether to lay a new pipeline to connect to the Waihapa Production Station.

The company said it planned to drill another four wells with a view to raising its production to 3000 barrels of oil-equivalent by the end of the first quarter of 2013.

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Taranaki Daily News