Tag well shows promise
Tag Oil has reported readings of "excellent mud gas" at the Ngapaeruru oil exploration site, 19 kilometres east of Dannevirke last week.
The Canadian oil company's records show indications of soluble gas in the oil present, with data being sent for further analysis.
"Our team did an excellent job drilling this first ever unconventional target in the East Coast Basin," Tag's chief operating officer Drew Cadenhead said.
The early mud-log analysis had returned wet gas and oil indicators, which was both encouraging and exciting, he said.
The find is the first one directly targeting the Waipawa Black Shale and Whangai formations, which are likened to North America's Bakken formation, a lucrative oil drilling location where hydraulic fracturing technology, or fracking, is used.
Based on the continuing success in Taranaki, Tag said it planned to continue exploring on the East Coast, but had not applied for a resource consent to frack.
Tararua mother Hayley Graham, who lives between two exploration sites, said drilling at the Ngapaeruru site ended last week. "I must say I am so pleased that they are going, but I'm sure they will be back here some time soon to start the same process at the second drill site."
The second Tararua drilling site will be 17km east of Dannevirke.