28 Oct 2008

Exploration company takes stake in Canterbury basin permit

12:39 pm on 28 October 2008

New Zealand Oil & Gas Ltd says it is to join other parties looking for gas in the Canterbury basin.

Under the agreement, NZOG is taking a 40% permit interest to work alongside three other companies in the region.

Chief executive, David Salisbury, says the company has studied the Canterbury basin concluding it has the potential to produce commercial quantities of oil and gas.

However, he warns investigations are at an early stage and there's no certainty an exploration well will be drilled.