New Zealand's Reinga Basin opened for oil and gas exploration

Energy and Resources Minister Gerry Brownlee today announced the opening of bidding for six new petroleum exploration blocks across the Reinga Basin off the northwest coast of New Zealand.
The block offer covers 105,230 square kilometres, and neighbours the Northland Basin also currently open for bidding. The area is geologically contiguous with the hydrocarbon producing Taranaki Basin.


"This is an exciting opportunity for New Zealand and explorers alike. It is one of the most prospective frontier basins in the New Zealand region with all the elements required for an active petroleum system present over a large area," said Mr Brownlee.


This is the first time blocks have been offered over the Reinga Basin.


"This Government is committed to maximising the potential of New Zealand's largely untapped petroleum resources. There could be substantial regional and national economic benefits arising from any discovery of new oil and gas," said Mr Brownlee.


"The immediate focus must be on increasing exploration activity and improving the knowledge of our petroleum basins. To support exploration of this virgin frontier basin area, the Government acquired 2,026 kilometres of 2D seismic data over the Reinga Basin in early 2009, as part of its Data Acquisition Programme."


A further 3,886 kilometres of 2D seismic data is available from CGGVeritas SA.


In coming months Crown Minerals will be promoting the Reinga Basin and Northland Basin bidding rounds to companies in Australia, North America, Europe and Asia.


The current block offer keeps up the momentum generated by previous block offer releases such as onshore Taranaki, offshore Raukumara, which closes this month, and offshore Northland, which closes at the same time as the Reinga Block Offer on 18 August 2010.


Details on the bidding round, location maps, and free technical data can be obtained at the Crown Minerals website: www.crownminerals.govt.nz.


Questions and Answers


Where is the Reinga Basin?


The Reinga Basin covers more than 150,000 km2 northwest of New Zealand, within the New Zealand Exclusive Economic Zone and Extended Continental Shelf. The blocks are from around 100km offshore out to the margin of the EEZ (200Nmiles) 440kms out from the coast.


To the southeast the Reinga Basin adjoins the Northland Basin.


What is the potential of the Reinga Basin?


Newly acquired seismic reflection data, a surface slick survey, and knowledge of the geology in the adjacent and contiguous regions of Northland and the productive Taranaki Basin indicate that a large part of it is prospective for oil and gas and some of it is highly prospective.


Large areas of sedimentary succession lie within the oil generation window. The sequence is similar to the oil and gas producing Taranaki Basin. Source rocks and reservoir rocks are in a number of clastic depositional settings. Formations are rich and modelling suggests volumes of expelled oil and gas. Slick surveys and seismic data suggest seeps are present in many areas. Fluid expulsion locations, leakage zones, and potential hydrocarbon expulsion pathways and complexes are indicated on the seismic data. Many structural and stratigraphic leads have been identified. They include rifted basins, horst blocks, reef carbonates, deep water channels, and submarine fans.


Where is the Northland Basin?


The Northland Basin lies offshore to the west of the upper North Island and covers an area of 120,000 square kilometres (the block offer covers a smaller area). This basin is contiguous with the oil and gas producing Taranaki Basin.


When will oil and or gas be discovered?


It is likely to be at least four to five years following the award of any permits (probably in late 2010), before we understand the full commercial potential of a discovery of oil or gas, and then another ten years before that oil or gas reaches any market.


How will these block offers impact on local people?


Following the award of any exploration permits the successful exploration companies will engage with local and regional authorities, and government agencies in accordance with relevant legislation.