Geological mapping an investment in New Zealand

Media Release – for immediate release
16 July 2009

Geological mapping an investment in New Zealand

The awarding of the contract to GNS Science for geological mapping is a valuable investment in New Zealand’s future, says Straterra, the industry group representing New Zealand’s natural resources industries.

Yesterday the Foundation for Research, Science and Technology (FRST), awarded the $18.6 million contract to GNS Science for geological mapping to find oil and gas reserves around New Zealand.

Straterra Chief Executive, Richard Michael, said the geological mapping was an essential investment to encourage further oil and gas exploration and would have huge long term benefits for the country.

“Investing in exploration will reap rewards for New Zealand and there is likely to be a huge return. The mapping contract shows foresight by the Government and is a great investment in our energy future.”

Mr Michael said the initiative had the potential to realise high rates of return, through increased revenue and investment in New Zealand.

“The geological mapping builds on the Government’s Budget announcement that it would fund $20 million of oil exploration. Similar surveys have previously resulted in $1.4 billion being spent on exploration. That’s a very good return on investment.

“Governments have done little over the past 25 years to make the most of our resource potential so it is pleasing to see moves are being made to encourage further exploration in an area that has the potential to substantially boost our country’s economy.

“New Zealand’s natural resources, as a whole, have a largely untapped economical potential. The metallic mineral potential of New Zealand has a gross in-situ value of more than $140 billion, with lignite adding an additional $100 billion. There’s also good potential for the discovery of new oil and gas resources so the mapping contract is a very positive move by the Government.”

ENDS

© Scoop Media