Earlier this week New Zealand Oil & Gas and its partners were hoping that despite the water-bearing interval encountered in the main Eocene-aged Kapuni F sands, the deeper Cretaceous North Cape would prove worthwhile.

However, yesterday morning NZOG announced that no zones of commercial interest had been intersected and the well was now being plugged and abandoned after reaching the 4238m target depth.

”This year's four well program in PEP 38460 is now complete, with finds at Amokura and Pateke adding to last year's discovery at Tui. These finds have established a reserve base which is now under consideration for near term development,” said NZOG exploration manager Eric Matthews from Sydney.

”In addition, the joint venture will be further assessing the many targets already identified in the licence area for future drilling.”

Assessing likely development options and further exploration, starting with more 3D seismic, would be top priorities, he added.

While one Diamond Offshore Drilling rigs packs up, another, the Ocean Patriot, is gearing up to this weekend spud Tawatawa-1 in PEP 38333 for Aussie listed company Tap Oil and its American partner Westech Energy. The Bounty is contracted to OMV Petroleum for further drilling in Australian waters.