Canadian junior TAG Oil is confident New Zealand’s East Coast basin is literally leaking oil and gas and will provide the potential for thousands of wells.

New Zealand's main oil and gas producing region is currently the Taranaki region on the west coast of the North Island but TAG said the East Coast basin on the other side of the North Island has "world class upside potential".

A presentation by the Canadian-based company said on its website it had identified widespread oil and gas seeps over a large area.

The presentation says the "East Coast basin is literally leaking oil and gas".

The Sunday Star Times newspaper reported that the company regarded the East Coast as a "Texas of the south" and wanted to pursue an aggressive program there. However, not everyone is excited by the potential of the resources estimate, local Labour politician and energy representative Moana Mackey said this is not where New Zealand’s economic future lies. “We need to be investing instead in renewable solutions,” Ms Mackey stated.

Last September TAG said it was undertaking seismic testing in the region, with first exploration drilling planned after that. The region is seen as having potential for shale oil extracted from rock. The company has a farm-out deal with Apache for the region, under which Apache may spend up to US$100 million ($A97 million) to earn up to half of TAG's present 100% share of exploration prospects.