Pacific Tiger, with offices in Singapore and Calgary, said the objectives of this latest program, scheduled to start about February 11, were to increase production, extend the northern boundary of the oilfield, and apply for an additional production licence.

"Horizontal drilling has never been undertaken in the past by Pacific Tiger and utilising this proven drilling technique is a significant milestone for the company. Our reservoir modelling indicates that we should see a substantial increase in well deliverability and reserve drainage as compared to vertical wells," said Pacific Tiger president Michael Cvetanovic.

"If successful, horizontal drilling will reduce our development capital requirements and dramatically increase our reserve valuation."

Drilling of the horizontal wells is expected to take around two weeks.

Two years ago the Canadian-listed company formally announced its departure from the New Zealand exploration scene, following its surrender of its sole interest in this country, offshore Taranaki licence PEP 38463.