Seismic search for oil and gas starts

Energy and Resources Minister, Gerry Brownlee, says survey work has started by the ship the Pacific Titan to assess the oil and gas potential of the Reinga Basin.

The Basin is located some 300 kilometres north west of Northland and has the potential to produce commercial quantities of oil and gas.

"This is the first seismic data survey since the government decided to reverse the previous administration's decision to stop data acquisition," said Mr Brownlee.

While current information suggests geology similar to the Taranaki basin the current seismic data is insufficient for Crown Minerals to attract explorer interest.

"This survey will gather 1500 kilometres of data on an exclusive basis for the Crown and another 4000 kilometres that will be made available to explorers on a non-exclusive basis by the acquisition company," said Mr Brownlee.

The survey is being carried out by CGG Veritas Services SA using the MV Pacific Titan, and the acquisition is likely to take 30 to 40 days.

The Pacific Titan has been used in previous data acquisition, the offshore East Coast survey in 2005 and the Great South Basin in 2006.

The oil and gas sector is New Zealand's third largest export earner. It is forecast to generate up to $300 million in revenue to the Crown over the next 12 months as new fields such as Maari and Kupe come on stream.