Kupe oil gas field has reported an increment in its reserves after re-evaluating the figures, proclaiming that the additional amounts, hence, discovered will enhance the company’s market value by $650 million.

It said that it is likely to generate profits worth $100 million in New Zealand Oil & Gas Ltd.

NZOG told that Kupe’s reserves showed an increment, after a trial was conducted by the former.

Kupe is situated nearly 30km away from south Taranaki coast. It has a record of generating natural gas, LPG and light oil, since last year.

Following the increment in the reserves, shares in NZOG surged 4 cents a share to $1.33.

The raise was seen to be the highest in light oil, accounting to a 27% increment to an approximately 18.6 million barrels.

Meanwhile, natural gas reserves surged 8% to 273 Petajoules and LPG amounts reserves jumped 5% reaching 1114 kilotons.

“Light oil provides the greatest financial return of the three products, so confirmation that the field is more 'liquids-rich' than initially estimated is significant", said NZOG Chief Executive, David Salisbury.

The analysis of the reserves has elucidated the needs of future capital expenditure in the area, which lies between $20 million to $30 million.