Drilling starts on exploration well in Canterburyadmin
Nelson-based company Green Gate has started drilling an onshore exploration well near Amberley in north Canterbury.
Widespread Energy, which has an 11.7 percent shareholding in Green Gate, said that the Kate-1 well was spudded in last night.
It was expected to be drilled to a depth of 1100m and, all going well, should be finished within two weeks, Widespread said.
The primary target of the Kate-1 well, about 50km north of Christchurch, were sandstone reservoirs at depths of 450m to 1050m, with secondary targets in younger sandstones and limestones.
An oil seep had been uncovered during geotechnical works in 2003, Widespread said.
Green Gate had spent four years in exploration and data analysis.
ASX-listed Gas2Grid has entered into an agreement to farm-in to the onshore portion of the 4464sq km Canterbury Basin exploration permit area that includes the drill site by funding the Kate -1 well.
Widespread Energy therefore has an effective interest of 5.27 percent in the onshore portion of the permit and 11.7 percent in the offshore portion.