Potential to discovery hydrocarbons associated with buried ... · PDF filethe New Zealand economy and provide models for hydrocarbon exploration internationally. ... generation-migration-accumulation)

Potential to discovery hydrocarbons associated with buried volcanoes

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Research Programme Title: Potential to discovery hydrocarbons associated with buried volcanoes. Impact statement: Understanding the effects of volcanism in sedimentary basins and associated petroleum systems. Contracting organisation: University of Canterbury – Christchurch, New Zealand Funding mechanism: 2017 Endeavour Fund - Smart Ideas, MBIE New Zealand. Status: Approved Number of years: 3 (extendable to 4) Start date: 01/10/2017 End date: 30/09/2020 Research team: Prof Andy Nicol - University of Canterbury Geol Alan Bischoff - University of Canterbury Dr Darren Gravley - University of Canterbury Prof Ben Kennedy - University of Canterbury Dr Simon Holford - Australia School of Petroleum Subcontractors: Elemental Group: Dr Mac Beggs GNS Science: Dr Karsten Kroeger Newman Energy Research Ltd: Dr Jane Newman Collaboration and Partnerships: Prof Dr Sverre Planke, University of Oslo, Norway. Dr Doug Waples, Sirius Exploration Geochemistry Ltd. Mark Webster, New Endeavour NZ. Geol Anna Kutovaya, University of Aachen, Germany. IHS Markit Schlumberger Primary contact: Alan Bischoff [email protected] + 64 27 224 3067 Secondary contact: Andy Nicol [email protected]

mailto:[email protected]

mailto:[email protected]


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Keywords: • Petroleum exploration • Buried volcanoes • Seismic reflection interpretation • Petroleum migration and accumulation • Volcanic systems • Thermal maturity

Abstract Understanding what energy resources are available and how to make best use of these resources will be crucial for New Zealand in the future. Over the coming decades the important contribution of petroleum to the economy is expected to decline without new discoveries. Internationally volcanoes buried in sedimentary basins are being targeted during oil and gas exploration with increasing commercial success. In New Zealand buried volcanoes are poorly understood, considered commercially high risk and rarely explored. Our preliminary analysis together with industry exploration indicates that New Zealand sedimentary basins contain many buried volcanoes that could host oil and gas resources. The purpose of this research is to de-risk oil and gas exploration of buried volcanoes by identifying the geological circumstances that promote the formation of petroleum accumulations sufficiently large to benefit the New Zealand economy and provide models for hydrocarbon exploration internationally. Our research aims to develop three-dimensional models of volcanoes buried in sedimentary basins to examine how volcanic systems can control the migration and potential accumulation of oil and gas. These models will be constructed using subsurface and outcrop information from ancient and modern volcanoes. The models will be entered into numerical flow simulators to determine the geological conditions that promote migration and accumulation of hydrocarbons in volcanic systems. Study of these volcanic systems together with their analysis will provide the new understanding necessary to develop novel petroleum exploration strategies to promote future exploration and discoveries in New Zealand and internationally. The proposed research will reduce the uncertainties and enhance the commercial viability of oil and gas prospects associated with volcanism. To extend our studies globally, we are searching for partnerships and collaboration with private petroleum companies. We aim to exchange data and information and provide technical studies to de-risk prospects in ownership of potential co-funders. In particular we are exploring opportunities to fund students and early career researchers.


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Glossary Volcanic System A set of interrelated elements that form a complete magmatic-sedimentary

complex, i.e., the pre-magmatic sedimentary strata deformed by magmatism, the syn-intrusive, syn-eruptive, and inter-eruptive part of the volcano, and the sedimentary strata that buried it.

Architectural Element

A 3D genetically related rock unit characterized by its geometry, facies, composition, and scale, and it is the product of a particular process or suite of processes occurring within a geological system.

Petroleum System

A unifying concept that encompasses all of the disparate elements and processes of petroleum geology, including: the essential elements (source, reservoir, seal, and overburden rock) and processes (trap formation, generation-migration-accumulation) and all genetically related petroleum that originated from one pod of active source rock and occurs in shows, seeps, or accumulations. Also called hydrocarbon system.

Geomodel Is a numerical equivalent of a three-dimensional geological map complemented by a description of physical quantities in the domain of interest.

NZPAM New Zealand Petroleum & Minerals.

AAPG American Association of Petroleum Geologists.

UC University of Canterbury.

GNS Science Institute of Geological & Nuclear Sciences.

IEA International Energy Agency.

MBIE Ministry of Business, Innovation & Employment.

ASP Australian School of Petroleum.

DoC Department of Conservation


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Executive Summary Little is known about the complex geological systems associated with buried volcanoes and the potential energy resources that they host. New Zealand sedimentary basins contain many buried volcanoes that are under explored for petroleum due to their perceived complexity. This research will study volcanic structures from New Zealand basins to develop models that can be utilised to establish the value of the associated petroleum resources. The knowledge generated from these models will provide decision makers and stakeholders with a means of clearly identifying energy resources and their potential value. Exploration in New Zealand and internationally demonstrates the potential of buried volcanoes to host hydrocarbon fields (Shell BP Todd, 1984; Stagpoole and Funnell, 2001; Schutter, 2003; Farooqui, 2009; Holford et al., 2012; Smith et al., 2014; Beggs, 2016; Kwasniewski and Kluska, 2017; Kennedy et al., 2017). Volcanoes emplaced and buried in sedimentary basins form complex geological systems that can accumulate large quantities of oil and gas in both sedimentary and volcanic rocks (Rohrman, 2007; Rateau et al., 2013; Bischoff et al., 2017). Our preliminary analysis together with industry exploration show that New Zealand sedimentary basins contain many buried volcanoes (Field and Browne, 1989; Giba et al., 2012; Bischoff et al., 2016; Barrier et al., 2017), but understanding of how they are likely to impact the formation of petroleum reservoirs is incomplete. Consequently, volcanic systems are considered commercially risky by the petroleum industry and are rarely pursued exploration targets (Bischoff et al., 2017). While oil and gas production from the Taranaki region makes a substantial contribution to the New Zealand economy, there have been few viable discoveries over the last 10 years. New innovations are required for the future discovery of oil and natural gas resources, which could have a significant economic and strategic value to New Zealand. The purpose of this research is to develop empirically based three-dimensional models of volcanoes buried in sedimentary basins that will provide insights into how they influence petroleum systems. These models will primarily assist in the assessment of resource potential and in the development of exploration strategies. The volcanic system models will also have application for the exploration and utilisation of geothermal resources from volcanic terranes. To achieve the research objectives an international team with multidisciplinary expertise and extensive international collaborations has been assembled. The team will use a range of techniques from different topics such as sedimentology, volcanology, geochemistry, organic and inorganic petrology, geophysics and numerical modelling, to establish where and why source rocks, basin thermal maturity, reservoir properties and trap conditions favour petroleum accumulation in commercial quantities. We will study in detail several buried volcanoes of varying age, with different geological, thermal and tectonic histories in the Canterbury and Taranaki sedimentary basins. These buried volcanoes together with examples from onshore New Zealand will be used to constrain the distribution and geometry of permeable and impermeable rock units within and around the volcanoes. The resulting three-dimensional numerical models will represent the complexity of volcanic systems and together with rock chemistry improve understanding of how hydrocarbons are generated, migrate and accumulate in volcanic systems. The results of this research will provide innovative methods and tools to reduce the uncertainties and support successful exploration of oil and gas associated with volcanoes buried in sedimentary basins of New Zealand and internationally.


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Science Conventional hydrocarbon systems operating within sedimentary basins generate oil and gas from organic matter, which migrates under buoyancy to accumulate in reservoir rocks beneath impermeable sealing layers. Volcanic systems in sedimentary basins have the potential to host important hydrocarbon resources (Figure 1), however, they are complex and unlikely to conform with conventional hydrocarbon systems (Schutter, 2003; Rohrman, 2007; Farooqui, 2009; Holford et al., 2012; Rateau et al., 2013; Smith et al., 2014; Kwasniewski and Kluska, 2017; Kennedy et al., 2017; Gravley et al., 2017). Many buried volcanoes occur in New Zealand sedimentary basins but their petroleum potential is largely unknown (Bergman et al., 1992; Beggs, 2016; Bischoff et al., 2017; Barrier et al., 2017).

Figure 1: Example of 2D seismic section of Kora volcano, Taranaki basin, showing the seismic characteristic of different stages of volcanism and the location of a proven sub-commercial petroleum field. (Kora-1 well, red = gamma ray and green = density). From Bischoff et al., 2017. This research aims to fill the gap in understanding by providing a basis for determining how these volcanoes influence petroleum systems. We propose to develop empirical three dimensional geological models that will represent the complexity of volcanoes buried in sedimentary basins and determine how hydrocarbons migrate and accumulate within the system. Information will be combined from offshore seismic reflection datasets that image buried volcanoes in the Taranaki (example in Figure 2) and Canterbury basins, outcropping volcanoes (Banks Peninsula, Tongariro Volcanic Complex and Oamaru volcanoes), and drillholes that sample sedimentary and volcanic rocks (e.g. Kora-1 and Resolution-1). Of particular value for imaging the three-dimensional geometries of the systems will be the use of seismic attribute visualisation software the use of which has been refined by the research team. The resulting models will incorporate three primary components. (1) Characterisation of the three-dimensional geometry, lithology and fluid-flow properties (e.g., porosity and permeability) of the main architectural elements that compose volcanic systems and their enclosing sedimentary strata (Planke et al., 2005; Holford et al., 2012; Couves et al, 2016; Kennedy et al., 2017; Bischoff et al., 2017). (2) Petrographic delineation of the thermal effects of volcanism and sediment burial on source rock maturity and reservoir rocks (Newman et al. 2013). (3) Numerical modelling of petroleum migration using input from the three-dimensional geometries and fluid flow rock properties of key rock units and geothermal data (Kroeger et al., 2014; 2015 and 2016). Each of


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the three main components of the research will be conducted in parallel with numerical modelling becomes increasingly important as the project progresses. The research team has exceptional breadth (with expertise in volcanoes, petroleum systems, hydrocarbon migration modelling, seismic reflection interpretation and geothermal fingerprinting), and links with international researchers. Key to maximising this expertise will be to ensure that the team maintains communication and collaborates closely, which will be facilitated by regular (monthly) team meetings and multi-institutional student supervision. The combination of new insights from seismic reflection datasets, detailed examination of outcropping volcanoes, analytical techniques for thermal maturity and volcano-scale petroleum-migration models is novel and will improve international understanding of petroleum reservoirs in buried volcanoes.

Figure 2: Example of 3-D seismic image of Kora volcano, Taranaki basin, showing the geometry and architecture of the volcanic edifice and the relationship with enclosing sedimentary deposits. From Bischoff et al., 2016.


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Team The track record and multidisciplinary skills of the team members ensure that research goals will be achieved. The team includes members with vast experience in physical volcanology and geothermal systems (Gravley); experts in source rocks and thermal maturity (Newman), petroleum migration and entrapment (Kroeger), reservoir geometries and dynamics (Bischoff, Holford, Nicol, Gravley), petroleum exploration and exploitation (Beggs, Bischoff) and conducting scientific research for industry (Beggs, Bischoff, Kroeger, Newman, Nicol). In addition to having vast experience of New Zealand petroleum systems the team has worked extensively internationally, including Australia, Asia, North and South America and Europe. All team members are free of corporate constraints on intellectual property provided to this research. The numbers in the brackets below indicate the research components (RC) each person will contribute to (see Research Plan for details). Prof Andy Nicol will provide overall leadership and apply his 25 years’ experience in structural geology and seismic interpretation internationally RC1 and RC3. Nicol has produced more than 120 refereed publications, presented over 100 international talks and posters and prepared approximately 80 industry consultancy reports. Alan Bischoff. 12 years’ experience in seismic interpretation and analysis, sedimentology, petroleum geology and exploration. Alan’s skills and knowledge of petroleum exploration practices (in particular, seismic attribute analysis and integration with physical volcanology processes) are central to the project (RC1 and RC3). He has produced 4 publications, presented over 10 international talks and posters and prepared approximately 30 industry internal reports. Dr Mac Beggs has been instrumental in recognising the inter-disciplinary knowledge gap to be filled by this research from his 35 years’ experience in sedimentary basin research and application to petroleum exploration. His roles will include integration of the results into the adaption of basin and petroleum systems analysis work flows in RC1, and promulgation of research results to the end user community. Dr Darren Gravley. 19 years’ experience as a physical volcanologist at the University of Canterbury specialising in physical volcanology and, mainly in silicic caldera volcanism and magmatism, volcano-tectonics, and volcanic geomorphology. He is the Principal Investigator of the ‘Source to Surface Geothermal Research Programme’, studying magmatic-geothermal systems funded by Mercury Energy (RC1 and RC3). Dr Gravley has published 32 papers in international journals and 4 book chapters. Darren will be co-supervising a PhD student and his time for this will not be funded from the present proposal. Dr Jane Newman. 30 years’ experience innovating advanced methods for characterising thermal maturity and investigating geological controls on thermal history in petroleum basins worldwide. Jane is the founder and director of Newman Energy Research Ltd and works extensively with the international oil and gas industry (RC2). Dr Simon Holford is an international expert in the seismic imaging of buried volcanoes with 15 years’ experience in seismic interpretation and petroleum systems modelling with a focus on Australian and European oil and gas provinces. He has produced seminal research on the seismic imaging and interpretation of igneous systems in sedimentary basins (RC1 and RC3). Dr Holford has published over 60 international publications.


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Dr Karsten Kroeger. 10 years’ experience in petroleum migration and thermal maturity modelling. Karsten is a foremost expert on petroleum migration in New Zealand sedimentary basins (RC3). He has authored or co-authored 16 articles in peer reviewed journals, two book chapters and 15 industry reports. The research team will build on the strong initiatives of GNS Science and on relationships developed by Mac Beggs in Taranaki (especially Te Atiawa and its hapu) and with runanga of Ngai Tahu since the 1990’s. In Year 2 a Masters project will create opportunities to interact with iwi to improved mutual understanding of the issues and concerns about petroleum exploration to communities and evaluating business opportunities. One PhD student will work with Darren Gravely, Alan Bischoff and Ben Kennedy (RA1) on volcanic facies models and petrophysics, and a second PhD student will work with Karsten Kroeger, Alan Bischoff and Andy Nicol (RA3) on reservoir scale hydrocarbon mitigation modelling.


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Special Ethical & Regulatory Requirements None required. All seismic and well data required for the project is open file sourced from the NZPAM 2015 datapack and held by the key researchers. It is likely that further relevant data sets will become open file over the course of the research, and will be incorporated in the research programme.

Intellectual Property Management This research project will be undertaken for Public Good. To that end all results will be made publically available through various media including national and international publications. An aim of this research project is to provide an understanding of the natural resources available in New Zealand’s Sedimentary Basins and to provide decision making tools that will evaluate that resource. Research results from this project will primarily assist in the assessment of resource potential and the refinement of NZ oil and gas exploration strategies. To achieve this aim we plan to effectively communicate these results to government agencies, petroleum companies, Iwi and research organisations. We believe that this broad dissemination among stakeholders is the most effective way of achieving impact. As part of the Intellectual Property Management Plan organisations participating in the research will commit to making the research results publically available, and communicated effectively to stakeholders. It is not the intent to seek to protect intellectual property developed within the project via patenting or trade secret protection. Either of these protection strategies would work against the broad dissemination among stakeholders required for uptake and adoption within future resource potential assessment and exploration strategy development activities. Potential co-funder petroleum companies may propose a confidentiality agreement in case of releasing of private data of their ownership for our studies.


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References Ashwell, P. A., Kennedy, B. M., Gravley, D., Bischoff, A. P. 2017. Structures controlling permeability in lava domes. AAPG - GWT – Oamaru. Programme and Abstracts, Oamaru – New Zealand. Extended abstract. Barrier, A., Nicol, A., Bischoff, A. P., 2017. Magmatic Occurrences in the Canterbury Basin, New Zealand. AAPG - GWT – Oamaru. Programme and Abstracts, Oamaru – New Zealand. Extended abstract. Beggs, M., 2016. The Barque Prospect, offshore Canterbury Basin: Impact of 3D seismic on evaluation of a giant structural prospect. 2016 New Zealand Petroleum Conference. Programme and Abstracts. Bergman, S.C., J.P. Talbot, and P.R. Thompson, 1992. The Kora Miocene Submarine Andesite Stratovolcano Hydrocarbon Reservoir, Northern Taranaki Basin, New Zealand. In 1991 New Zealand Oil Exploration Conference, 178–206. Bischoff, A. P., Nicol, A.; Beggs, M., 2016. Seismic imaging and characterisation of volcanic systems in New Zealand sedimentary basins. 2016 New Zealand Petroleum Conference. Programme and Abstract. Bischoff, A. P., Nicol, A; Barrier, A., Beggs, M. 2016. Stratigraphic Record of Volcanism in Sedimentary Basins – Examples from New Zealand. New Zealand Geological Society Conference. Programme and Abstracts, Wanaka – New Zealand. Bischoff, A. P., Nicol, A., Beggs, M., Kennedy, B. M., Gravley, D. 2017. Stratigraphy of Architectural Elements and Implication for Hydrocarbon Exploration in Kora Volcanic System, Taranaki Basin, New Zealand. AAPG - GWT – Oamaru. Programme and Abstracts, Oamaru – New Zealand. Extended abstract. Bischoff, A., Nicol, A., Beggs, M., 2017. Stratigraphy of architectural elements in a buried volcanic system and implications for petroleum exploration. Interpretation, In Press. ISSN: 0020-9635. Couves, C., Roberts, S., Racey, A., Troth, I., Best, A. 2016. Use of X-Ray computed tomography to quantify the petrophysical properties of volcanic rocks: a case study from Tenerife, Canary Islands. Journal of Petroleum Geology, 39 (1) 79-94. Edman, J. D., E. Sprunt, J. Newman, M. Ruder, and J. Ellis, 2015. More efficient and cost effective ways of evaluating and high grading unconventional plays: Interpretation, v. 3 no. 3, (August 2015), p. SU33-SU46, http://dx.doi.org/10.1190/INT-2014-0279.1. Farooqui, M. Y., Hou, H., Li, G., Machin, N., Neville, T., Pal, A., Yang, X., 2009. Evaluating volcanic reservoirs. Oil Field Review 3 (3), 36-47. Field, B.D., Browne, G.H. 1989. Cretaceous and Cenozoic sedimentary basins and geological evolution of the Canterbury region, South Island, New Zealand. New Zealand Geological Survey Basin Studies, 2 - Wellington.


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Giba, M., J. J. Walsh, Andrew Nicol, V. Mouslopoulou, H. Seebeck, 2013. Investigation of the Spatio-Temporal Relationship between Normal Faulting and Arc Volcanism on Million-Year Time Scales. Journal of the Geological Society 170 (6): 951–62. doi:10.1144/jgs2012-121. Gravley, D., Gualda, G., Harmon, L., Tromonto, S. 2017. Zooming into the Paraná-Etendeka silicic volcanics, southern Brazil: a physical volcanological approach to a potential hydrocarbon question. AAPG - GWT – Oamaru. Programme and Abstracts, Oamaru – New Zealand. Extended abstract. Holford, S.P., Schofield, N.; Macdonald, J.D.; Duddy, I.R.; Green, P.F. 2012. Seismic analysis of igneous systems in sedimentary basins and their impacts on hydrocarbon prospectivity: examples from the southern Australian margin. APPEA Journal, v. 52, p. 52. IEA World Energy Outlook 2015. https://www.iea.org/Textbase/npsum/WEO2015SUM.pdf. Kennedy, B. M., Heap, M., Bischoff, A. P., Nicol, A., Villeneuve, M., Cole, J. 2017. Insights into volcanic rocks as petroleum reservoirs from laboratory and field permeability measurements. AAPG - GWT – Oamaru. Programme and Abstracts, Oamaru – New Zealand. Extended abstract. Kroeger, K.F., Funnell, R.H., Nicol, A., Fohrmann, M., Bland, K.J., King, P.R., 2013. 3D crustal-scale heat-flow regimes at a developing active margin, Taranaki Basin, New Zealand. Tectonophysics 591, 175-193. Kroeger K.F. and Sykes R., 2014. Unravelling the evolution of a complex petroleum system using 3D basin modelling and geochemical analysis (Kupe-Kapuni region, SE Taranaki Basin), Advantage 2014 Conference, Wellington Kroeger K. F., Funnell, R., Arnot, M., Bull, S., Hill, M., Sahoo, T., Zhu, H. 2015. Re-assessment of the prospectivity of southern Taranaki Basin (New Zealand) using integrative 3D basin modelling. Eastern Australian Basins Symposium 2015. P.217-230 Kroeger, K.F.; Funnell, R.H.; Arnot, M.J.; Bull, S.; Hill, M.G.; Zhu, H. 2016. Reassessment of exploration risks in Taranaki Basin related to Gondwana margin evolution and establishment of an active Plate Boundary in New Zealand using integrative 3-D basin modelling. Search and Discovery Article #10834. 25p. Kwasniewski, A., Kluska, J. M. 2017. Hydrocarbon Exploration in Volcanic Systems: Evaluation of Reservoir potential. AAPG - GWT – Oamaru. Programme and Abstracts, Oamaru – New Zealand. Extended abstract. Ministry of Business, Innovation & Employment (MBIE) 2012. Economic contribution and potential of New Zealand’s oil and gas industry Economic Development Group Occasional Paper 12/07 August 2012. ISBN 978-0-478-38246-4 (Contact: [email protected]) Ministry of Business, Innovation & Employment (MBIE) 2016. Energy in New Zealand. ISSN 2324-5913 (Contact: [email protected]) Newman, J., N.A. Moore, K.M. Eckersley, D.A. Francis, 2000. Application of Vitrinite-Inertinite Reflectance and Fluorescence to Maturity Assessment in the East Coast and Canterbury Basins of New


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Zealand. 2000 New Zealand Petroleum Conference Proceedings, 314-333. Ministry of Economic Development, Wellington. Newman, J., J. D. Edman, J. A. LeFever, J. Howe, 2013. Parshall Field: Inferences from new data regarding Bakken hydrocarbon generation and migration (extended abs.): 2013 Unconventional Resources Technology Conference, #1578764. Planke, S., Rassmussen, T., Rey, S.S., Myklebust, R. 2005. Seismic characteristics and distribution of volcanic intrusions and hydrothermal vent complexes in the Vøring and Møre basins. In: Dore, T. & Vining, B. (eds) Petroleum Geology: North-West Europe and Global Perspectives - Proceedings of the 6th Petroleum Geology Conference. Geological Society, London, 833-844. Rateau, R., Schofield, N., and Smith, M. 2013. The Potential Role of Igneous Intrusions on Hydrocarbon Migration, West of Shetland. Petroleum Geoscience 19 (3): 259–72. doi:10.1144/petgeo2012-035. Rohrman, M. 2007. Prospectivity of Volcanic Basins: Trap Delineation and Acreage de-Risking. AAPG Bulletin 91 (6): 915–39. doi:10.1306/12150606017. Sahoo, T.R., Kroeger, K.F., Thrasher, G., Munday, S., Mingard, H, Cozens, N., Hill M. 2015. Facies Distribution and Impact on Petroleum Migration in the Canterbury Basin, New Zealand, Eastern Australian Basins Symposium P. 27-42 Shell BP Todd, 1984. Interpretation and prospectivity of PPL 38203 Canterbury Basin New Zealand. Ministry of Economic Development, Wellington, unpublished open-file Petroleum Report 1046. Schutter, S. R., 2003, Hydrocarbon Occurrence and Exploration in and around Igneous Rocks. Geological Society, London, Special Publications 214 (1): 7–33. doi:10.1144/GSL.SP.2003.214.01.02. Smith, N.H., Newman J., Gavey R. 2014. VIRF technique applied to refining the maturity profile of southwest Taranaki Basin, New Zealand – subsurface evidence for Late Miocene hydrothermal fluid migration. Advantage NZ 2014 Geotechnical Petroleum Forum 12p. Statistics New Zealand 2011. Year to December 2010. Hot Off The Press Overseas Merchandise Trade: June 2011. Wellington: Statistics New Zealand. Stagpoole, V. M., and R. H. Funnell, 2001, Arc Magmatism and Hydrocarbon Generation in the Northern Taranaki Basin, New Zealand. Petroleum Geoscience 7: 255–67. doi:10.1144/petgeo.7.3.255. Venture Taranaki 2015. The wealth beneath our feet: the next steps. Venture Taranaki Te Puna Umanga. http://www.taranaki.info/news/files/1405.pdf

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Potential to discovery hydrocarbons associated with buried ... · PDF filethe New Zealand economy and provide models for hydrocarbon exploration internationally. ... generation-migration-accumulation)