New Zealand Oil & Gas Ltd., the nation's biggest publicly traded explorer, said the Taranui-1 well off the country's Taranaki coast contained only minor oil shows and will be plugged and abandoned.
``Logs recorded while drilling indicate that there are no potentially productive intervals present,'' the Wellington-based company said in a statement to the New Zealand stock exchange.
Taranui, 30 kilometers (19 miles) off the west coast of New Zealand's North Island, had been estimated to contain 5 million to 15 million barrels of oil. It was targeted as an add-on to the nearby 32 million-barrel Tui field, developed in partnership with Australian Worldwide Exploration Ltd. and Mitsui & Co.
N.Z. Oil & Gas owned 12.5 percent of Taranui. Its stock fell 2.9 percent to NZ$1.00 at the 5 p.m. close of trading in Wellington.
Last month, the partners also abandoned the Hector well 65 kilometers southwest of Tui. The prospect had been estimated to hold about 60 million barrels of oil.