The Oil Drilling & Exploration Rig 19 spudded Rahotu-1, in the southern coastal part of licence PEP 38722, late last month and should reach the 3000m target depth within two weeks or so. The wildcat well is targeting the shallow Matemateaonga and Miocene-aged Mt Messenger and Moki formations within a faulted horst feature.

During the drilling of the more northern Warea-1 well in late 2001, Discovery Geo encountered a volcanic intrusion, resulting in what company president Bernett Martin told the 2002 New Zealand Petroleum Conference was a "nightmare" of a drilling program. A sidetrack extension of that well, in May 2002, also failed to encounter any significant hydrocarbons.

Martin told EnergyReview.Net that Discovery Geo's main exploration focus was now on its New Zealand and Australian interests.

Discovery Geo last year acquired the onshore coastal Taranaki licence PEP 38743, between Cape Egmont and New Plymouth, and the offshore Taranaki Basin licence PEP 38479, north of New Plymouth but south of the Kawhia Harbour.

Discovery Geo operates the PEP 38722, with fellow US partners Manti Resources., Ultra Oil & Gas Inc., MM Cone Inc., and King Operating Corp.