High Netback Oil and Gas Production

Taranaki Production
The high-quality oil that TAG produces from the Taranaki Basin is sold primarily to Australian and Asian refineries, receiving premium prices to West Texas Intermediate because of its low sulfur content.

TAG’s current production cost is approximately US$20 per barrel. The natural gas we produce in Taranaki is used for onsite power generation to run our Cheal treatment facility via gas-fired generators that convert the gas to electricity. All excess natural gas is sold into the national grid, fetching prices comparable to North American markets.

East Coast Basin Opportunities
Oil from the East Coast Basin is premium quality (50 degree API), and does not require the special wax handling treatment of Taranaki oil. Any discovery of oil in the East Coast could be easily transported to the nearby ports of Napier or Gisborne for delivery into the Asian market. There is currently no gas infrastructure in the East Coast, however there is a thriving forestry, pulp and paper industry, which is one of the largest consumers of electricity in the country. A lack of available electricity results in long term and expensive transport via long-range transmission lines. But a local energy source, such as major gas reserves, can be converted to in situ electricity via gas-fired generators.