DEVELOPMENTS IN THE CENTRAL AND NORTHEASTERN EAST COAST BASIN, NORTH ISLAND, NEW ZEALAND

Abstract

Oil production in the East Coast Basin began in the late 19th century from wildcat wells near oil seeps. By the mid-20th century, geology was being applied to oil exploration, but with little success. In the late 20th century, seismic techniques were added to the exploration arsenal and several gas discoveries were made. At each stage it was recognised that exploration in this difficult but tantalising basin required more information than was available. Continuing work by exploration companies, as well as by the Institute of Geological & Nuclear Sciences (GNS), has begun to reduce the risk of exploration. Source rocks have been identified and sophisticated thermal models show that petroleum is being generated and expelled from them as shown by numerous oil and gas seeps onshore. Many potential reservoir sequences have been recognised from outcrop studies and depositional models are being refined. All components of petroleum systems have been demonstrated to be present. The most important deficiency to date is the general lack of high-quality seismic data which would allow recognition of reservoir facies in the subsurface.During early 2005, Crown Minerals, the New Zealand government group charged with promoting and regulating oil and gas exploration, commissioned a high specification regional 2D survey intended to address some of the main data gaps in the offshore East Coast Basin. A broad grid was planned with several regional lines to be acquired with a 12,000 m streamer and infill lines to be acquired with a streamer 8,000 m long. It was expected that the long streamer would increase resolution of Paleogene and Cretaceous units. Several of the lines were actually acquired with a 4,000 m streamer due to unexpectedly high rates of unserviceability. The resulting 2,800 km data set consists of a series of northwest–southeast lines approximately orthogonal to the coast at a spacing of about 10 km as well as several long strike lines.GNS was contracted to produce a series of reports covering source rock distribution, a catalogue of reservoir rocks, a regional seismic interpretation, thermal models and structural reconstruction. The data package and reports are available free of charge to any interested exploration company to accompany the licensing round that was announced on 1 September 2005. The new data set has confirmed the existence of a large, little-deformed basin to the north of North Island and the Bay of Plenty; it has elucidated the complex structure of a large part of the East Coast Basin and has enabled generation of a general sequence stratigraphic model which assists in delineating reservoir targets. On 1 September 2005, the New Zealand government launched a licensing round covering about 43,000 km2 of the East Coast Basin, from the far offshore East Cape Ridge in the north to the northern Wairarapa coast in the south. Four blocks (I, J, K and L) were on offer for a competitive staged work programme bid, closing on 17 February 2006.