"The small Kea Petroleum firm and Australian partners Rawson Resources and Hardie Energy plan to carry out seismic testing and drill a shallow well, less than 2000 metres deep, at a cost of about $2 million.
The well is planned for late next year and would be about 3km east of the Waihapa oil field. The prospect could hold in the "few million" barrel range, Dr Bennett said.
The Waihapa-8 well targeted the same level and produced about 750 barrels a day.
The partners are carrying out remapping and geological evaluation work in their Petroleum Exploration Permit areas 51153 and 51155 in Taranaki, before seismic and drilling work.
The partners had a "baseline of funding" but were looking for a bit more and were open to bringing in new partners, Dr Bennett said, but they would stick to lower-cost onshore exploration."
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