Seismic and satellite data show that the Reinga Basin, off the northwest coast of the North Island, is one of the most promising frontier basins in New Zealand, GNS Science says.
Analysis shows the basin contains potentially oil-bearing sedimentary rocks that are up to seven kilometres thick and it has
all the elements needed for a working petroleum system.
Rock sequences are similar to those in the Taranaki Basin, which is producing oil.
Last year, the Government received nearly $1 billion from petroleum production, with $543 million from royalty payments alone.
The 150,000sq km Reinga Basin was opened up to bidding this year and the release of GNS data is aimed at increasing interest in the offer, which closes in August.
The GNS report is based partly on 5000km of two-dimensional seismic reflection data acquired in 2009 by Crown Minerals in partnership with petroleum services company CGGVeritas.
The lead author of the report, Vaughan Stagpoole, said: "There was clear evidence of petroleum expulsion zones, which means there is an active petroleum system in the basin."
The Reinga Basin is is further from land than the adjacent Northland Basin and in deeper water, which can be a challenge for explorers.
