4 Apr 2013

NZEC finds more oil in Taranaki Basin

1:46 pm on 4 April 2013

The New Zealand Energy Corporation has struck oil in the Taranaki Basin.

It is the Canadian-based company's sixth oil discovery in the region.

NZEC announced the discovery to the Toronto Stock Exchange overnight on Wednesday saying the well has produced a total of 407 barrels of oil to date.

The well has since been shut down until a pump is installed.

NZEC executive director Bruce McIntyre said the new well has the potential to increase the company's oil output by 100 barrels a day from the present 300-325 barrels a day.

The company also has permits to explore the east coast of the North Island, offshore near Gisborne and Wairarapa.

Separately, New Zealand Oil and Gas says work has begun to collect a seismic survey on a permit north of the producing Tui oil field, offshore the Taranaki basin.

The survey will cover nearly 600 square kilometres including the Kokako prospect and parts of the Takapou permit.