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Exciting Potential In Taranaki Gas Field
Genesis Power’s $15m investment in the Cardiff-2 gas field in Taranaki has got the thumbs-up from energy analyst Chris Stone, who believes it’s the most exciting onshore gas prospect in NZ at present. Genesis has finalised a deal with Austral Pacific to fund an initial Cardiff-2 well, just south of Stratford, in a field which may hold up to 1000PJ of gas - more than a quarter the size of Maui. This would be worth an estimated $4bn to $6bn if gas prices rise as projected during the next few years.
Stone says test drilling more than a decade ago indicated “pretty attractive” reserves in the Cardiff prospect but it wasn’t considered commercial at the time because of the abundance of cheap Maui gas. Now, with Maui dwindling, it looks very attractive indeed. Stone predicts “It could play a very important part in NZ’s energy supply.” Such a find would be huge boon for Genesis, which needs gas for its Huntly power station and a planned second gas-fired station nearby.
Genesis will acquire a 40% stake in the Cardiff-2 field, and the right to buy all the gas found. The well is to be drilled and tested in the 4th quarter of this year. If it holds as much gas as expected, Cardiff-2 will be bigger than the Pohukura field, estimated to hold 750PJ of gas.
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