Off-shore Drilling Suspended

Press, Volume CIX, Issue 31922, 25 February 1969, Page 28

Off-shore Drilling Suspended

(New Zealand Press Association)

WELLINGTON, February 24.

Esso Exploration and Production, N.Z., Ltd, announced today that its off-shore drilling programme in New Zealand is to be suspended pending results of additional studies.

The disappointing results of the drilling combined with the delays in the completion of the seismic survey off the South Island meant that the present drilling programme had to stop, said a company spokesman.

The desirability of a continued oil exploration programme later in those areas covered by Esso’s licence will be considered. In the meantime the offshore drilling rig Discoverer II will go to Malaysia after the well being drilled off Opunake is complete. Government Disappointed The Government is “understandably disappointed” that Esso is not prepared to delay its decision to transfer Discoverer 11. the Minister of Mines (Mr Shand) said today. “But we must accept that Esso does not have sufficient further exploratory work completed in its own area to justify retention of the rig,” he said. The Shell-8.P.-Todd well Moa No. 1 would be completed to the point of testing within a week or 10 days.

“If the results are encouraging it is to be hoped that the company will be able to engage another rig for further drilling in the near future,” said Mr Shand. ! In Short Supply It had to be recognised that this kind of equipment was in very short supply and, “much

as we would like to, we have no right or justification to demand that Esso should keep their rig available for another company.” Mr Shand said it had been agreed with the Government that the two companies would share the rig on an alternate

i drilling programme if results i had been sufficiently encouri aging. But even in fields which offered great promise of ultii mate success, only one wild- : cat or first well in 10 could I be expected to develop into a > production well.