COMMERCIAL Hematite Will Drill Two Wells Off N.Z.

Press, Volume CIX, Issue 32215, 6 February 1970, Page 16

COMMERCIAL Hematite Will Drill Two Wells Off N.Z.

(N.Z. Press Association— Copyright) MELBOURNE, February 5. Broken Hill Proprietary, Ltd, said today that its whollyowned subsidiary, Hematite Petroleum (N.Z.), Ltd, would drill two wells off the coast of New Zealand.

Hematite will drill one well off Taranaki and the other off the Nelson coast.

B.H.P. said negotiations were under way to secure a rig for both the wells, and it was planned to begin drilling late this year. Hematite was recently incorporated to be responsible for B.H.P.’s oil exploration in New Zealand.

B.H.P. said that through Hematite it had exercised its option on licence 687 off the West Coast of the North Island after completing a 353mile seismic survey.

Under this option, Hematite will drill a well to earn a 50 per cent interest in licence 687. The licence area is about 6200 square miles and is immediately north of Shell-B.P.-

Todd’s “Maui” area off the Taranaki coast The present licence holders are New Zealand Offshore Petroleum Corporation, Ltd, and Esso Exploration and Production (N.Z.), Ltd. In addition to the North

Island agreement, B.H.P. said, Hematite and Esso had completed negotiations under which Hematite would drill a well to earn a 50 per cent interest in licences 711 (of 5400 square miles), 716 (184 square miles), and 717 (185 square miles) off the northwest coast of the South Island. Licence 711 is off-shore and 716 and 717 are on-shore areas. All three are held by Esso.

B.H.P. said also that the grant of an on-course area of 825 square miles, comprising five licences south of Auckland, which was announced recently, would be made to Hematite.