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Home / Hawkes Bay Today / Business

Water drillers take chance on oil

By Patrick O'Sullivan, Business Editor
Hawkes Bay Today·
31 Jan, 2015 03:48 AM5 mins to read

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WELLDONE:One of Hastings-based Honnor Drilling's five drilling rigs in action.

WELLDONE:One of Hastings-based Honnor Drilling's five drilling rigs in action.

MORE than 50 years' experience with the high-pressure Hawke's Bay's aquifer has enabled Honnor Drilling to expand into the petroleum and geothermal industries.

Company owner Bill Hogg says a third of its work is in the energy sector and the local aquifer's pressure helps keep outsiders out of the market.

"There's a 50 per cent chance that anyone drilling a hole on the planes will hit artesian water," he said.

"Then you have a problem - you have a 7m head coming out and you have to control it.

It stops a lot of drilling - you have to have some skills on artesian suppression.

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"A well spilling water is not just wasting it, it could compromise the integrity of an aquifer on a different level.

"One of our jobs is controlling the wells - making sure everything is sealed. Because we have artesian suppression experience it helped us move into geothermal. Steam has massive pressures and you need a blowout prevention device."

Honnors' main clients are orchardists, vineyards, small block of owners and domestic customers.

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Dry weather was good for business. Maintenance and reticulation were a big part of its business, employing 15 people.

Honnors' main competition is Baylis Brothers, the oldest drilling company in Hawke's Bay.
"They are possibly not as large as us but they are good healthy competition. It keeps things honest and it is good that the customer has a choice."

The local industry was in a time of change.

"As drillers we have had to move further and further away - the work dries up as an aquifer gets fully allocated.

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The prospect of the Ruataniwha water storage scheme has not been good for business.

"We used to do a lot of drilling in Central Hawke's Bay but we haven't done much in the last three years because the regional council won't allow it.

If the dam goes ahead it could be good for business.

"There would be geotech drilling, water reticulation and a greater population would lead to more domestic and farm wells.

"I see the future of this company as services to the farmer - giving better service on water reticulation. I don't think we are going to drill a lot of new wells.

"We do a lot of frost protection wells. They are getting better yields - it's to do with the buds. It is good because you are not using much of the aquifer - you are only doing it two or three times a year and it is in the winter time when people aren't using much water.

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"We also do a lot of fire protection wells for industry. You can bang one down to reduce your insurance."

Despite the quick uptake of Honnors' expertise in the energy sector, he isn't hanging his hard hat on its future.

"My view is oil is here today and it could be gone tomorrow. The local Hawke's Bay business is what the company is built on and it is our core business, servicing those customers."

Mr Hogg has been with the company for three years, buying it from Greg Honnor who remains as consultant in the firm founded by his father. This week Mr Honnor is drilling in Taranaki for Todd Energy.

The company was offered to Mr Hogg "discreetly" through an accountant.
A sixth-generation farmer in Scotland, Mr Hogg emigrated with his young family 20 years ago.

He sought independence and was concerned farming subsidies would be removed.

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"We used to get a third of our income in a brown envelope from the government.

"I really believed they were going to come off. I hated the subsidies because you didn't farm well - you farmed for the subsidies - and I hate being told what to do.

"Since then subsidies have gone up and they are now about half the income. Talk about getting it wrong.

"I like to be able to change my plans. With subsidies you have to do exactly what you say you will do and you get inspection after inspection - people are in control of you. I like to make my own adjustments all the time."

In New Zealand he wanted to be a beef and sheep farmer again "but nothing stacked up" except dairy.

"I had milked cows but I was not a dairy farmer. I was bloody sure I wasn't going to milk cows - that was the last thing I was going to do. A year later I did milk bloody cows."

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Over 15 years they built up a 2500-cow operation on four farms until it became "time for a change". They moved back to Britain in 2009 to support their daughter's studies. She is successful in the broadcasting industry "so it was worth it".

"Greg was looking for someone to take over building the business with an agricultural background. He was thinking of succession and vetted me. It was very important to him his life's work wasn't wasted.

"I wanted to do something different and I have always loved water."

The difference water made in Canterbury was "fantastic".

"What it can do for the standard of living is just phenomenal. I love the idea of creating wealth where there was none before. That is the story of New Zealand, creating wealth benefiting everybody and working with the environment.

"It is very powerful - we are driven by the promises. New Zealand is an agricultural economy and I love it for that."

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He said his company did not lack for "grey-haired" experience and his different background was an advantage.

"The Kiwi is always questioning, always inventing. He hates English stuffiness and rules, which I think is fantastic."

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