TAG Oil says it is establishing New Zealand's first unconventional oil and gas production directly from the source rock in the East Coast.
Conventional oil and gas is the harvesting of petroleum that has naturally pooled underground. Unconventional oil involves taking petroleum directly from its source, which includes fracking.
In its financial statement for the second quarter of the 2014 year, the Canadian company said its production was up more than 50 per cent over a six-month period.
Profits are being directed to the exploration of its East Coast permits, where analysts have likened known petroleum formations to some of the largest found in North America.
At least one unconventional well will be drilled in the Gisborne region in the next six months "prior to an anticipated widespread unconventional drilling campaign".