Jetex seeks to revive Solid Energy’s plan to extract Waikato coal gas

Monday, 19 January 2026

Defunct state-owned miner Solid Energy explored the potential for extracting coal seam gas from the Huntly coal mine for several years. Now that work may be revived.

A United States-owned oil and gas junior has applied for a permit to drill for gas near the Huntly power station in Waikato, in a rare sign of activity in the exploration industry.

Denver-based Jetex, which has other interests in Taranaki and in the Netherlands, is seeking to target gas contained deep underground in unmined parts of the Renown and Kupakupa coal seams just north of Huntly.

Jetex applied for a permit for two wells last month, committing to drill them within three years of receiving the permit.

Ian Brown, a director of its Wellington-based subsidiary, said the company might be able to say more about its assessment of the potential size of the gas field in March, noting it was not in Jetex’ interests to talk up the opportunity until it had a permit.

Under a new process put in place by Resources Minister Shane Jones last year, any other business interested in drilling in the area would have three months from the date of the permit application to make a competing application to drill the seams.

Brown noted former state-owned coal miner Solid Energy had done quite a bit of work in the permit area before it went out of business in 2015.

“They’ve shown the viability of producing gas out of the coal seams.”

Solid Energy got as far as drilling some pilot wells, from which it produced gas that it burnt for electricity. It estimated at the time that coal seam gas could eventually meet up to 10% of the country’s gas demand.

But in 2012 it decided to refocus its efforts on extracting coal seam gas from a potentially larger resource in Taranaki.

Jetex ‒ previously known as Riverside ‒ has had separate long-standing plans to drill for oil and gas in Taranaki.

Those took a step forward last month when the Supreme Court rejected an appeal by environmental group Climate Clinic Aotearoa to revoke, on climate action grounds, drilling permits awarded in 2021 to the company and to New Zealand-owned oil and gas firm Greymouth Petroleum.

Jetex’ Taranaki permit covers an area of 53 square kilometres east of Eltham, which it believes has a find with the potential to yield 6 million barrels of oil and gas.

Brown said the ruling cleared the way for it to begin drilling in the area after what he made clear the firm viewed as a frustrating delay caused by the legal action. “We're back to business as usual,” he said.