New Zealand Oil & Gas says the Kohatukai-1 well it is a partner in will be plugged and abandoned after failing to deliver commercial volumes of gas.
The well, drilled south-east of New Plymouth last month, had elevated gas readings in the Matapo and Mangahewa sands. But the company says further sampling and analysis undertaken since then suggests those shows were from residual gas.
“The joint venture’s view is that no economically viable gas reserves have been encountered in the well. The well will now be plugged and abandoned.”
NZOG shares fell 3.2 percent to 61 cents before the well result was announced. They have fallen about 15 percent so far this year.
The Wellington-based explorer has a 25 percent stake in the permit, as does its parent company Ofer Global Group. Operator AWE owns 12.5 percent, with the balance held by its parent company, Mitsui E&P Australia.
NZOG said it does not currently plan more onshore wells in Taranaki.