US oil company Anadarko is on its way to Otago to drill for oil and gas, despite having no luck in Taranaki. The company had been exploring in the region since November last year.
The Texas company confirmed to Radio New Zealand on Tuesday that it drilled to the maximum limit of 4600 metres and, while it had found small traces of oil, it was nowhere near enough to be commercially viable.
The drilling sparked a flotilla protest and an unsuccessful High Court battle challenging the company's Anadarko's right to explore.
Anadarko's New Zealand manager, Alan Seay, says the company has proven to New Zealand that it can drill for oil safely.
But environmental organisation Greenpeace, which took the court action, said that is no indication that there won't be problems on another well.
Prime Minister John Key said on Tuesday it was disappointing that oil hasn't been found in Taranaki as a discovery there could have had vast benefits for New Zealand.
