Shell explores West Coast potential

By Phil Boeyen, ShareChat Business News Editor

Wednesday 5th September 2001

Oil company Shell says it will spend around a million dollars this week to undertake a seismic survey off the South Island's West Coast.

Shell reports it has entered into an agreement with Denver-based Thomasson International Ventures in which it will do seismic testing in a largely unexplored region, to the north and off-shore from Haast.

Shell executive, Dr Lloyd Taylor, says the area permit area the company is looking at has some geologic similarities to the Taranaki and the South East Australian Gippsland oil and gas producing basins, although on a smaller scale.

The permit area, which covers almost 12,000 square kilometres, was awarded in July of last year and Thomasson approached Shell two months ago to help explore the possibility that the area may be prospective for oil and gas.

"We believe that Thomasson has developed a very interesting exploration play that warrants further investigation," says Dr Taylor.

"After the seismic survey we will be in a position to ascertain whether the exploration concept warrants further consideration. If the results are positive, we may exercise our option to take up a 100% working interest in the permit."

Dr Taylor says this latest exploration by Shell New Zealand, while still in its very earliest stages, shows the company's commitment to oil and gas exploration in New Zealand.

The seismic work will take a week and should be completed by Sunday.

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