New Zealand Oil & Gas is undertaking a $30 million summer drilling programme and is hopeful of selling down its interest in some projects.
Chief executive David Salisbury, says the drilling programme got off to a disappointing start when the Albacore exploration well, in the northern Taranaki basin, was found to be non-commercial, with only traces of oil and gas found.
But Mr Salisbury says the company has acquired a new permit for an area north of Albacore, named Mangaa, and information obtained from the drilling at Albacore is being used to develop a better understanding about its potential.
The Kan Tan will then be used to drill at least two wells at the nearby Tui field.
Mr Salisbury says the company will also look at getting partners on board before starting drilling the Gamma and Barque exploratory permits, to share the risk.
It owns the entire Gamma permit and a 40% stake in the Barque permit.