Gisborne well shows oil traces

By Felicity Anderson, Nzoom.com Business News Editor

Tuesday 21st May 2002

West Australian oil exploration company Sun Resources says it has seen a hint of oil in the well it is drilling north west of Gisborne.

But New Zealand geologists say that was probably to be expected knowing the history of the area.

Sun Resources told the markets that while drilling between 332 and 335 metres in its Waingaromia well drillers and geologists noted oil film on drilling mud they described as "definite and distinctive".

Geologists say while that indicates oil migration - and that's good - it doesn't necessarily mean a resource has been discovered.

A well of the same name was drilled in the same area in the 1880s. South Pacific Petroleum started by digging pits, then actually drilled to 1321 feet before extracting some barrels of oil, records show.

With that history, geologists say it is reasonable to expect to find traces in the area.

Brad Farrell, the Chairman and Managing Director of Perth-based Sun Resources, was unavailable for comment.

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