Tag Oil says Gisborne District Council has granted it consent to drill the Waitangi Valley-1 well in the East Coast Basin.
Tag, which owns 100 percent of the prospect, says earthwork activities are already underway to build an access road and drilling pad, with construction expected to be fully complete and drilling rig mobilized to the site by the end of June.
It says the well will be drilled to a total depth of 3600 meters, with the well targeting the naturally fractured Waipawa Black Shale and Whangai source rock formations.
