New Zealand operations manager Bruce Morris said Ranui-1, in the Wairarapa region's licence PEP 38342, would be Discovery's first onshore well in New Zealand.
The East Coast Basin is attracting more exploration activity, partly because of potential shale plays, according to Morris.
The basin stretches for 600km onshore and offshore along the central-east and southeast coast of the North Island.
Companies such as Discovery Geo, another US independent Pogo Producing Company, Canada's Trans-Orient Petroleum and Melbourne's Lakes Oil are exploring the region.
"It is under-explored but we feel, as others do, that it is prospective for tight gas in coal shales," Morris said.
Crown Minerals late last week granted Discovery Geo its third onshore East Coast permit.
PEP 50189, a 2481-square kilometre block in southern Wairarapa, was essentially the old PEP 38341 licence that Discovery had relinquished last year because of some uncertainties regarding the required work program.
"We bid for it again when the acreage came up under the Priority in Time application process and we are glad we won it because we know two other parties applied for the same acreage," he said.
