New energy minster Trevor Mallard said the survey marked the start of a major project by the government to attract more oil and gas exploration investment in this country.
But some industry commentators were skeptical about the value of the project. Deep wells that penetrated the Waipawa black shales were needed to help people understand the complexity of the structural system off the East Coast, not more seismic, one commentator told EnergyReview.net.
“What we need are new ideas, not new seismic, and an understanding of the dynamics of the basin,” he said.
“It’s not surprising the few previous wells, including Tap’s Tawatawa well last year, encountered some gas shows. But we need a deep well that actually penetrates the Waipawa shales and any reservoirs below,”
However, the minister was much more positive.
“This is an incredibly significant project as we are at a crossroads for exploration in New Zealand,” Mallard said.
“By commissioning this and other surveys we have a unique opportunity to showcase the oil and gas potential of New Zealand, and to significantly reduce the cost of entry to New Zealand for new explorers.”
The survey is the first of its kind under the NZ$15 million fund established by the government last year as part of a package of incentives to lift exploration levels in New Zealand.
The survey will cover 100,000 square kilometres off the East Coast, from Wairarapa to Bay of Plenty, and is expected to take up to six weeks. The data acquired, and the results of subsequent geotechnical studies, will be released, probably in July, to the industry free of charge to support future block offers and encourage further exploration in those areas.
"The East Coast has been chosen as the first petroleum basin to be surveyed because it's considered to be the region with the best potential and also the region which can be developed most quickly outside existing production in the Taranaki Basin,” Mallard said.
“We have no doubt that opening up the frontier basins, supported by freely available seismic data, is the right combination to attract large scale exploration and, in turn, make a real difference to our energy future.”
