On Tuesday, Greymouth applied to Crown Minerals for a 40-year petroleum mining licence, covering 53.65 square kilometres, almost identical to its exploration licence PEP 38464 that expired the same day.

Greymouth operated that licence with a 98% interest and the local Maori Ngati Te Whiti Hapu Society held a 2% carried interest. This equity arrangement will remain in any mining permit granted.

The application area covers not only Port Taranaki, but also coastal waters along about half of the city's beachfront, as well as several square kilometres of suburban New Plymouth.

Company chief operating officer John Sturgess said Greymouth has been drilling radials out from the port wellsite location to appraise under the city and out to sea.

Two months ago, Sturgess said the company had almost finished the second stage of its long-term field development program for the oilfield, completing the third well, Moturoa-7, and nearly finishing the first sidetrack of that well.

This followed the drilling in late 2006 and early 2007 of the Moturoa-5 and 6 wells that initially flowed naturally from multiple shallow zones, though the waxy crude later needed pumping to continue commercial flows.

Rates in excess of 200 barrels per day have been recorded.