Hydrocarbon finds expected

Press, 13 November 1985, Page 40

Hydrocarbon finds expected

PA Wellington The Ministry of Energy has said it was optimistic that significant new hydrocarbon discoveries could be made off the Taranaki coast. The confidence was based on a newly completed study of the area, the Ministry said.

“The-soon-to-be released report delineates several undrilled structures and provides a basis for optimism of significant new hydrocarbon discoveries.

“The 1985 Energy Plan and the Ministry’s annual report both record that confidence in the existence of undiscovered petroleum remains high,” it said. The Ministry said it was recognised that exploration in New Zealand might reflect the world trend that high discovery rates during initial stages of exploration were followed by a decline to more stable levels as exploration proceeded. However, there were many undrilled potential structures of considerable size both in and around New Zealand.

“In addition, it is very likely that additional structures would be found, as some of New Zealand’s Sedimentary basins remain sparsely explored.” it said. Any forecast of future oil and gas discoveries needed to recognise the process of risk weighted decision-mak-ing that explorers had to address, the Ministry said. This was best judged by the perception of the exploration industry itself.

“There are now more companies — both local and overseas — than ever before involved in petroleum exploration in New Zealand.”

It said recent news media articles, quoting a Department of Scientific and

Research report, had said that future oil and gas finds in New Zealand were likely to be small. However, the D.S.I.R. report had the qualification that “finds would be small unless new geological regions or concepts are found.” In fact, several new concepts were being pursued by

exploration companies, the Ministry said. “With the rapid development of prospecting techniques and exploration technology, New Zealand’s sedimentary basins will be the subject of extensive study over the coming years and the strong possibility remains of very high rewards,” it said.