Another search for oil off Taranaki

Sydney-based Australian Worldwide Exploration Ltd, the operator of the Tui oil field, is advancing plans to drill four exploration wells offshore.

AWE has secured the services of the semi-submersible drilling rig Kan Tan IV to drill four wells off the Taranaki coast.

Final selection of the wells to be drilled has not been made and remains subject to joint venture approvals but AWE expects one well to test the Hoki prospect. Two wells near the producing Tui oil field are also expected.

"The programme is of major importance to AWE as well as to New Zealand," said AWE managing director Bruce Wood.

"The Tui oil field has already become a major contributor to the New Zealand economy and has illustrated the value of the petroleum sector to the country."

The Kan Tan IV is expected in Taranaki waters in the third quarter of 2009.

- NZPA