Canadian company finds more gas in Taranaki’s Tariki field

• More gas found in Tariki field in Taranaki
• NZ Energy Corp says find of significant volumes
• Further testing needed but suggested production add about 2-3 percent annual NZ output
• Plans to develop gas storage facility for Genesis to use in winter power generation

A Canadian based oil and gas company has had a modest gas find in Taranaki.

The New Zealand Energy Corporation (NZEC) said it had tapped a new supply in the existing Tariki field, but further testing will be needed to assess the full extent of the supplies.

“The Tariki-5A gas development well has confirmed there is significant additional producible gas remaining in the Tariki sands higher in structure than was previously accessed,” chief executive Michael Adams said.

In a statement to the Toronto Stock Exchange, where NZEC is listed, it said it would move to set up processing facilities.

“Management of New Zealand Energy expects the reservoir to be able to deliver at least 10 terajoules per day (nine million cubic feet per day).”

Production around those levels would equate to about 3 percent of the country’s current annual gas output.

“This is sufficient to exceed the requirements of the gas sales agreement between the Tariki joint venture and Genesis Energy.”

The onshore Tariki field is largely depleted and jointly owned by NZEC and L&M Mining, but it has been earmarked as a gas storage facility, which the company said it would start to work on.

Genesis Energy has taken a right to develop up to 10 PJ (petajoules) of gas storage with the Tariki joint venture, so gas can be stored for use during winter months.

Genesis Energy was forced to buy gas from the country’s biggest industrial user, Methanex, during the winter power scare in a short term deal that ended in October, because of a shortage of local supplies which forced it to burn more coal at the Huntly power station.

A minority shareholder in NZEC, Monumental Energy, told RNZ in September that it was “excited” by the potential of the Tariki drilling.