TAG Oil has made the decision to plug and abandon their Ngapaeruru-1 well east of Dannevirke and reinstate the land back to agricultural use.

"We will mobilise our equipment to the well site next Monday, September 5 and will have a number of heavy vehicles, the equivalent to livestock truck and trailers, at the site," Rodney Hosking, TAG Oil's land liaison adviser told the Dannevirke News.

Plugging the well will involve putting cement down the hole to permanently seal it, with the work expected to take two or three days.

TAG Oil began drilling their exploratory well at Ngapaeruru in April 2013 targeting petroleum-rich rock formations at about 1800m. However, despite the well encountering high shale gas readings with indications of moveable hydrocarbons, Mr Hosking said the company had decided to abandon the well because of the economic climate.

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"We are required to leave the well in a safe condition and we will put the land back to how it was before and then the permit will be handed back to the Government," he said.

Tararua District Mayor Roly Ellis said his council has had a good relationship with TAG Oil throughout the exploratory process.

"Many in our community were looking forward to the prospect of jobs, but for the moment, that won't happen," he said.

In late October, TAG will start the re-establishment of the Ngapaeruru-1 site to farmland, using local contractors.

"We want to keep our relationship with the Tararua District Council intact and be transparent with the community, so we welcome any questions," Mr Hosking said.

- If you have any queries about the work, phone Mr Hosking on 027 864 6088.